Globalization and banking: Past, present and future of foreign direct investments in the Turkish banking sector

The importance of the globalization process cannot be ignored in a constantly changing and transforming world. This process has had an impact on many fields of study and continues to do so. One of its areas of influence is the banking sector, which provides financial support to real and legal persons. However, with the effect of the globalization process, banks are no longer operating in certain areas and countries, but in many different areas and countries. In Turkey, by applying the free market economy in parallel with many countries of the world, it enables private banks with foreign partnerships and completely foreign capital banks to operate in Turkey, as well as state-owned banks in the country. In this study, as a result of the globalization process, what is expected of international banks that operate or will operate in the form of foreign direct investment in terms of profit and loss is examined. In this respect, in the first part of the study, globalization and the economic reflections of globalization, as well as the globalization process of the banking sector in general, are examined. In the second part, foreign direct investments and the methods of opening international banks outside their home countries are examined. In the third part, the Turkish banking sector is examined with the SWOT Analysis (Strengths, Weaknesses, Opportunities and Threats) method. As a result of the SWOT Analysis, the Turkish banking sector appears to be positive in many respects due to its current and future legal, structural, socio-cultural and demographic characteristics. Therefore, the Turkish banking sector is profitable for international banks that will come to Turkey through foreign direct investments.