The Turkish Banking Sector: The Periods of 2002-2007, 2007-2011, and After 2011

Abstract

Financial structure of the banking sector in Turkey has maintained its importance due to the high share in the financial sector for many years. The potential of banking sector that can have a huge a positive or negative impact on the economy makes it one of the most element of stability and growth of an economy. This study briefly compares the periods prior to 2002 and different periods after 2002. It is seen that banking sectors showed improvements during 2002 and 2007 due to the political stability, right financial policies, and right banking regulations. Since these positive effects on economy continued on the next period till 2011, banking sector could achieve targets. The effects of global financial crisis that started in 2008 were limited in Turkey and financial sector played an important role to overcome the negative effects of global financial crisis. However the banking sector could not outperform in terms of US dollar after 2011.