Capital Inflows and Banking in the Turkish Economy

  • Resul Aydemir
  • Gokhan Ovenc


We examine the developments in the Turkish banking industry in the context of capital and financial inflows specifically focusing on cross-border banking liability. First, we analyse how the Turkish economy, as an emerging market, has been affected by capital and financial inflows. Against this backdrop, we describe the transformation of the Turkish banking sector, paying special attention to the post-2001 period. In particular, we also investigate the impact of cross-border liability on the performance of Turkish banks. Finally, we evaluate the current outlook of the Turkish banking sector and offer some policy recommendations.


Turkish banking industry Capital inflows Cross-border banking liability 

JEL Codes

E44 F3 G15 G21 


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Copyright information

© The Author(s) 2018

Authors and Affiliations

  • Resul Aydemir
    • 1
  • Gokhan Ovenc
    • 2
  1. 1.Department of EconomicsIstanbul Technical UniversityIstanbulTurkey
  2. 2.Department of EconomicsIstanbul UniversityIstanbulTurkey

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