Abstract:

The Banking Regulation and Supervision Agency, which regulates and supervises banks and non-bank financial institutions, regulated and licensed savings finance companies in 2021. Since there is a regulatory gap and many obligations will be required during the licensing process, many companies that think they can take advantage of being a pioneer in the market have started their operations. Most companies do not have an adequate organizational infrastructure and have a weak financial position, so their activities are stopped by the BRSA. Although only the six companies received permission to operate under savings activity have achieved institutionalization in many areas such as ensuring the success of internal audit, risk management, sound corporate governance, providing the financial reporting infrastructure, and determining the principles of continuous audit and surveillance by the authority, there are still efforts to eliminate some of their deficiencies. The Legislation Committee, Financial Reporting Committee, and Media and Communication Committees established under the Association of Financial Institutions constantly work to eliminate the deficiencies. In this article, the world practices, the functioning of the savings financing system in Turkey, its legal nature, suggestions for the development of the savings finance sector, SWOT analysis, mission, vision, legislative change requests, and solution suggestions are discussed.

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