With domestic debt financing of the budget of the banking sector impacts

Despite the increase in public spending can no longer relate this increase in public revenues, budget deficits cause. Of globalization to the fore with the liberalization of policies, many developing countries, as well as in Turkey, has brought many problems. Liberalization policies implemented without ensuring adequate economic infrastructure, increased fragility of the financial system, has led to high budget and fiscal deficits. These negative developments in the banking sector have also adversely affect the banking sector away from traditional functions to fulfill the needs of the public finance has become a factor.Our country since 1990 public spending rapidly increase the public's main income is tax revenue enough can not meet the public deficit of the size growth caused the public sector borrowing requirements increase in the mainly through domestic borrowing was financed.In this thesis, Turkey's public sector since 1990 continued to increase the budget deficit and this deficit of the domestic debt through the fund be the banking system's balance sheet and risk structure that was caused by impact, in 2001, which introduced the economic stabilization program after which direction changes, the various using ratios, and have tried to analyze the sample Halkbank.