Interest policies in the Republican period (1923-1938)

This study examines the social, legal, and economic dimensions of interest in Turkey during the Early Republican Period (1923–1938). In particular, it focuses on the government's direct intervention in interest rate policies within the framework of the negative impacts of high interest rates on economic and social life. In this context, the study evaluates in detail the state's economic regulations, efforts to monitor the interest market, and the social consequences of these interventions. The 1887 Murabaha Regulation inherited from the Ottoman Empire, along with the 1926 Civil and Commercial Codes and the 1933 Law on Lending, provide the fundamental legal framework for understanding the historical continuity and transformation of interest practices. These regulations played a significant role during the Early Republican Period in limiting interest rates and controlling the societal effects of high interest rates. Primary sources used in the research include archival documents, the Official Gazette, the Parliamentary Records, contemporary newspapers, and works published during the Early Republican Period. These materials provided essential data for analyzing the effects of state intervention. Across the transition from the Ottoman Empire to the Republic, there is continuity rather than a sharp break in interest practices. Interest functioned not only as an economic instrument but also as a phenomenon shaped by moral, legal, and ideological dimensions, directly connected to social relations and state regulatory mechanisms. This study approaches interest as a multifaceted concept that goes beyond its economic function, shaped by legal regulations, social dynamics, and political choices.