Contributions of public banks established in 1930-1938 statism period to Turkey economy

Industrialization is an essential element in order to increase the economic development of a country. Especially in developing countries where there is insufficient knowledge and capital for industrialization, the necessary capital is provided by lending through banks. In cases where industrialization is more difficult in the private sector, the State plays an active role in the market in line with its economic policies. The state aims to industrialize in a planned way by establishing banks. In this study, the effects of public banks on the economy were tried to be explained. Before the establishment of the Republic of Turkey, the Ottoman Empire had a ruined economy with no industrial revolution and a banking sector in the hands of foreigners. With the establishment of the Republic, the idea of full independence was dominated by the idea that economic development should be done as soon as possible and that development should be done through banks. However, as a result of the expected success as of 1929, government officials turned to different economic approaches and adopted statehood. During the period of statehood, state-owned banks were established and factories were established in line with industrial plans. By adopting an import substitution approach, incentives such as increased production in the country and the use of domestic goods were made. This study covers the contributions of the state-owned banks established in the period 1930-1938 to the industrialization and economic development of Turkey. In our study, the period 1923-1929 was mentioned briefly and the development that took place between the two periods was tried to be shown. Also mentioned are some banks that were active during the period and made significant contributions. In addition to the books and articles used in the study, the leading newspapers, magazines, reports and Congress papers of the period were tried to be reached. It is understood that production and consumption are increased with the factories established by the state banks established during the period, as well as contributing to the increase in employment and partial increase in per capita income. With the planned and strategic economic orientations, it is understood that the main objectives of the government officials such as protecting the value of the targeted Turkish currency, ensuring foreign trade balance, increasing the number of bank depositors by directing the people to savings and meeting the internal consumption of basic products are realized.