Abstract:

The Turkish economy witnessed a significant structural change in all of its industries since the terrifying economic meltdown occurred in 2001. The main objective of that inevitable structural change was to restructure the scattered economy, and accelerate its process of international integration. Thanks to the banking reform conducted within this framework, Turkish banking sector has willingly participated to this change process too. In this study, it is examined how the sector’s employment has been affected by the acceleration of foreign direct capital inflows to the sector as a result of the judicial and technological restructuring in Turkish banking industry within this scope. However, thanks to the Turkish banking sector’s unique ability to tap into information technologies to the full extent, it was observed that the employment loss in the Turkish banking industry experienced after the economic meltdown in 2001 was first recovered, and then more jobs were created than that of 2001 levels during the following stage. In line with this change, there is also seen an increasing rate of human capital accumulation in the volume of labor-force in this sector.

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