Turkey as an Accession Country
This chapter focuses on the legal and structural changes, as well as current developments, in the Turkish banking sector. In becoming an EU accession country, Turkey had to adjust its legislation and regulatory environment to that of the EU by adopting the EU acquis communautaire during the convergence process. The first section of this chapter reviews the restructuring strategy of Turkey over the last decades. Following this, the chapter examines the recent structure and assesses the increasing foreign presence in the Turkish banking sector, specifically comparing it to its Central and Eastern European counterparts. Then, the focus of attention switches to the EU accession process, by discussing Turkey’s long-standing EU membership negotiations as well as the likely pros and cons both for Turkey and the EU. Finally, Turkey’s readiness and the impact of the Basel II Accord directives on the current levels of capital adequacy of Turkish banks, and the institutional preparations of Turkish banking and financial systems towards adapting EU regulation and systems are discussed.
KeywordsBanking Sector Private Bank Foreign Bank European Economic Community Real Effective Exchange Rate
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