Financial liberalization and the effects of Turkish banking sector

11 ABSTRACT We try to study the orijins of the Financial Liberalization theory and basic proposals. We have tried to point out the counter theories. The content of this thesis is to study the Financial Liberalization programmes and the ampirical results applied on the developing countries. We have point out the effect on the Turkish Banking sector applied in Turkey. We have studied the historical developments of the Turkish Banking sector. The emphasis in the economics Literature has shifted from macro economic to issues of the fund allocation process in financial markets in the last decade. The analysis of financial liberalization policies in generally based upon the frame work provide by the financial repression analysis of Shaw (1973) and Mc Kinnon (1973). The central concern of the present study is the design of the effective implementation of financial Liberalization or financial change. The principal objectives are twofold. First, we aim to study the broad theoretical basis of amplied financial liberalization in Turkey to relation Turkish Banking sector. The second aim is to analyze the financial repression theory and the counter theories; New Keynesian, Post Keynesian and Structural theories.