In accordance with globalization of banking system and BDDK in Turkey

The world economy has changed profoundly over the last twenty years, particularly after the second half of 1980s, following a substantial political, social and technological transformation. These changes lead us to a very popular concern, the debate of globalisation. During this period, the world has become more integrated economically, politically and socio-culturally as a result of advances in communication and information technologies, reduced trade barriers and increase in internatiol trade and factor mobility, reduced barriers to foreign investment and end of cold war. During the last two decades more and more countries based their economic policies on structural reforms. The common aim of these reforms is basically to overcome the inadequate economic conditions. To achieve this, private entrepreneurship is encouraged while reducing the state controls and regulations. There has been a considerable tendency towards liberalisation, such as privatisation, reducing the share of public sector in productionand tax reforms. Thus, economies become relatively much libarel and open. The Turkish economy has experienced a rapid transition parallel with the trend mentioned above. The import substitution policy of 1962-1980 is replaced by the export oriented growth policy in 1980. During the period 1980-1989, Turkey has tried to be integrated to the world economy by primarily opening its production market to foreigners. In 1989, Turkey has removed all the restrictions on capital movement, and liberalised the foreign Exchange market hence, improved the process of globalisation and integrating the Turkish economy to the morld markets. The firs goal of Turkey?s ?liberalisation and structural transition reform programme? in 1980 was to establish the conditions for an open economy. For this to be achieved the international trade is liberalised and the inflow of foreign investment is encouraged. The second one was to limit the role of public sector in the economy. Hence, the programme focused on privatisation of public institutions and on reducing the government expenditures. Amongst these policies applied after 1980, trade liberalisation policy was applied more decisively. It could be said that during this period Turkey has accomplished the trade liberalisation and the structural reform of foreign trade. However, it has failed in transformating the public sector.