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Current Developments and Prospects for Turkish Banks

  • Yener Altunbaş
  • Alper Kara
  • Özlem Olgu
Part of the Palgrave Macmillan Studies in Banking and Financial Institutions book series (SBFI)

Abstract

In the penultimate chapter we focus on current developments and take a look at the prospects of Turkish banking for the future. Above all, the most important occurrence, not only for Turkish banking but also for Turkey as a nation, was the declaration of Turkey as an EU accession country in 2005. The first section of the chapter reviews the structural and institutional preparations of the Turkish banking and financial system towards meeting EU regulations and systems. Then we switch our attention to the implementation process of newly reinforced capital adequacy directives (Basel II), followed by the readiness for and the impact of the new Basel Accord directives on current levels of capital adequacy of Turkish banks. Subsequently, we discuss the developments in housing loans with the introduction of the Mortgage Law. Potential EU membership, the successful banking sector restructuring programme after the 2000/01 financial crises, the enforcement of internationally accepted banking standards such as Basel II, and the growth potential of the sector, attracted an historical amount of foreign investment to the banking industry. In the final section, we review the recent acquisitions by foreign banks and assess the impact of a large foreign presence on Turkish banking.

Keywords

European Union Banking Sector Capital Adequacy Housing Finance Housing Loan 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Yener Altunbaş, Alper Kara and Özlem Olgu 2009

Authors and Affiliations

  • Yener Altunbaş
    • 1
  • Alper Kara
    • 2
  • Özlem Olgu
    • 3
  1. 1.Business SchoolBangor UniversityWales, UK
  2. 2.The Business SchoolLoughborough UniversityLoughboroughUK
  3. 3.Koç UniversityIstanbulTurkey

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