Özet:

The basic aim of this study is to determine the basics of the banking crises in Turkish Republic of Northern Cyprus (TRNC) within the framework of literature survey in order to create and preserve stability in the sector. According to the basic findings of the study critical factors causing banking crises can be categorized under the headings of external factors, macroeconomic policies, legal arrangements, holding banks, lender of resort, credit risk & management, capital adequacy and ethical issues combined with the regulatory and supervisory deficiencies. Furthermore it has been observed that crisis negatively affected bank deposits, credits and public confidence on local banks in such a way that financial investors direct or swing their deposits from Government banks and Private commercial banks to Foreign banks with head offices in Turkey

Anahtar Kelimeler: