Abstract
The Ottoman economic mind was closely related to the basic concepts of state and society in the Middle East in which the ultimate goal of a state was consolidation and extension of the ruler’s power. By developing commercial centers and routes, the state performed basic economic functions in the empire. In 1923, Turkey underwent a great transformation in terms of religion, social, and cultural bases of Turkish society as well as its political and economic structure with its announcement as a republic with Ataturk being its first president over 14 years. This chapter discusses the changing structure of the economy, financial system and banking sector since the Ottoman Empire up until today’s Modern Turkey. It provides the reader with an overview of political instability, financial crises experienced in the country and what has changed in the banking sector over the past 700 years.
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- 1.
The Crimean war was a conflict between the Russian Empire and alliance of the French Empire, the British Empire, the Ottoman Empire and the Kingdom of Sardinia.
- 2.
See, Akguc (1987) for details of Turkish banking.
- 3.
This bank subsequently changed its name to Türkiye Sanayii ve Kredi Bankasi.
- 4.
Later on named as Emlak ve Kredi Bankasi.
- 5.
US president Harry Truman set forth the Truman doctrine in 1947 which is a policy stating the US economic and military support to Greece and Turkey in order to prevent their falling into the Soviet sphere. See, http://www.Trumanlibrary.org/publicpapers/index.php?pid=2189&st=&st1= for details.
- 6.
It is an American program to provide monetary support to Europe in rebuilding their economies after the World War II. See, http://www.marshallfoundation.org/library/doc_marshall_plan_speech.html for details.
- 7.
See, Denizer (1997) for more information on the effects of financial liberalization in Turkey.
- 8.
Later on named Midland Bank Inc.
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Olgu, O. (2014). Political Instability and Turkish Banking Since the Ottoman Empire: A Historical Overview. In: Dincer, H., Hacioglu, Ü. (eds) Globalization of Financial Institutions. Springer, Cham. https://doi.org/10.1007/978-3-319-01125-7_6
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