Abstract:

In the Ottoman Empire joint stock companies and banks were mostly guided by foreign capital and European corporation knowledge. The constitutional and progressive governments of the Second Constitutional Period (1908-1918) tried to put the principle of nationalizing the labor and capital movements into the country. It became possible to regulate labor and capital movements according to Western law during the Republican period. 1920’s were a great transformation period for Turkey for both politically and economically. After the foundation of the Republic in the first half of the decade, the second half of the 20’s were a great “Roaring 20’s” period for Turkish Economy as well. But it did not last long. The Great Depression started in 1929, brought great troubles for Turkish Economy and banks in the 1930s. Extensive researches can be found on Turkish banking sector after 1930s, but it's difficult to find related studies for pre-1929 period. One reason for this is that the sources before 1928 were written in Ottoman scripts. But main reason is the fact that most of the national banks were newly established in the 1920s and that the financial services was at a primitive level. The aim of this study is to summarize the operational results of early banks of Turkish Republic in the Roaring 20’s. Financial statements of both local and foreign banks operating in Turkey in the first decade of the Republican period is consolidated and examined. This period also provides a summary of the balance sheet structures of Turkish banks on the eve of the Great Depression of 1929.

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