Türkiye'de Bankacılığın Tarihsel Gelişimi (Historical Development of Banking Sector in Turkey)

Beginning from 1840s, the revenue needs of the Ottoman goverment stimulated the development of banking in the Otoman Empire. Foreign banks sovereigned the banking sector until 1920s. At the beginning of the twentieth century, as a result of credit needs of local businessmen, local banks were set up. This process continued through the first quarter of the twentieth century. By 1923, there were 20 local banks and 15 foreign banks operating in Turkey. In 1920s, national and investment banking started but legislation was made after the Great Depression. Central Bank was set up in 1930. The initial steps in the promotion of the banking sector were undertaken in 1930s. Government established some banks in the 1930s in order to finance industrialization while the number of foreign banks decreased to 9. After the World War II, a number of private national banks increased and branch network was expanded. In 1960s, the affiliations of banks in industrial firms increased. Between 1958 and 1980 banking sector was highly repressed and controlled by Central Bank. Beginning from January 24,1980 financial irregulation policies had an impact on the scope and content of the banking sector in Turkey. A number of banks increased but, uncontrolled free market created a vast problems in the financial sector. Open economy and insufficient legislation in this area made banking sector very vulnerable. At the end of the subsequent financial crises, banking sector was restructured and controlled after 2001. As a result of globalization the share of foreign banks has been expanded in the banking sector in the first decade of 21th century.