Banking sector affected by macroeconomic crises: Turkish application

Macroeconomic instabilities whether in developed and/or developing countries, cause economic crises. The scope of these crises sometimes can be limited in a certain country or a region, and sometimes spread over all of the world through more liberal capital movement and the international dimensions of financial liberalization. Macroeconomic instablities and economic crises firstl hit the banking sector in the whole world. This causes some other crisis as a stone hits the surface in the oceanand the ocean waves begin.In this study, Turkish financial system in which spesifically publicly-owned, privately-owned and foreign-owned commercial banks are taken into consideration to search the effect of November 2000 and February 2001 crises. In a certain period the performance of Turkish Banking system is analyzed. In this context this study uses three parts to examine and explain major crises in the world, theories of crises, banking crises, the causes of the banking system in Turkey. In the last section of this study financial data and performance are analyzed and interpreted through statistical analyses. Within the period between 1997 and 2009.Keywords: Bank, Banking Crises, Banking in Turkey.