Abstract:

The banking system, which had a major share in the Turkish financial system, was affected by the developments in Turkish economy. The economic understanding of the economic management and applications had an impact over the structuring of the banking sector. Turkish banking system showed a fluctuating behavior in the last decade, the financial system became more fragile, and the volatility of the indicators led to the economic crise. As a result, the volume of the banking loans was decreased after the crise periods.Although Turkey is considered a liberal country from the foreign direct matters; high inflation level, economic and political instability and unavailability of establishing effective policies for the movements of foreign capital in the world made Turkey to be shown among the crise countries of the emerging markets. This situation causes the foreign capital not to invest in Turkey at required levels. Therefore, the restructuring of Turkish economy toward decreasing the risk and bureaucracy with the rationalization of the economy became the essential elements for the foreign capital investments.

Keywords: