Regulation of the turkish financial markets

Financial regulation is the function of the regulation and supervision of the financial institutions? organisations and operations by authorities. The reason for a need for a financial regulation is that the financial sector is prone to crises if it is left alone or is uncontrolled which could have a negative effect on the real economy. As a result, even the whole economy could be effected terribly. In this context , the frame-work of this paper is to determine the way, the reason and the existing authorized institutions of the financial regulation in Turkish Financial Markets. In order to understand the financial regulation, it must first be defined the theories of financial regulation and the instruments for regulations which are available to the authorities. Furthermore, the optimum regulation will be discussed by taking into consideration of the benefits and costs of the regulation. After examining Turkish financial markets? structure with financial institutions, general outlook and problems in the markets; financial crises which are among the reasons for financial regulation, will be evaluated with theoritical approach. Finally, financial regulatories in Turkish financial system and reflections of global regulation arrangements to our country will be evaluated. The study shows that Turkish financial system has experienced a series of financial crises because of lack of efficient regulations. But in 2008 global crisis, which has terrible effects on many developed countries was relatively uneffected to the Turkish market, because of the efficient financial regulation implementations after several previous crises. This fact shows the importance of the financial markets regulation.