The role of the banks association in prevention of banking crises and guild organization

Banking crises have recurred continuously in emerging market countries since the 1980s. The 2008 Global financial crisis has a devastating impact, especially on developed countries with a robust economic and financial infrastructure. The fact that the 2008 Global Crisis took place especially in countries with developed market mechanisms proved the inadequacy of traditional measures to prevent banking crises. This study emphasizes the need for measures at the meso (bank associations) level in addition to the traditional measures, macro (public) and micro (in-bank) measures, in order to combat banking crises more effectively. Ottoman guilds, which operated at the meso level and were a professional organization like bank associations, performed a number of complementary functions between the state and the tradesman in the past, which especially increased the effectiveness of the measures taken by the state. The study fills an important gap in the current literature by revealing that guilds can be a role model for bank associations in preventing banking crises. The main purpose of the study is to examine the effect of the complementary role of bank associations on macro measures in preventing banking crises. In this context, "The Scale of the Effectiveness of the Complementary Role of Bank Associations in Preventing Banking Crises" was developed. The developed scale was applied to a sample of retired bankers and academics. The obtained data were tested by structural equation modeling method. As a result of the study, the complementary roles that bank associations should undertake in preventing banking crises have been identified. These roles relate to mediation, democratic participation, self-control and social benefit. Keywords: Global Financial Crisis, Banking Crisis, Ottoman Guilds, Meso-Measures, Bank Associations, Structural Equation Modeling