Public banks in Turkish banking sector and restructing practices in public banks

Public banks in our country, especially founded for transfering resources to different sectors from government, subsidization of the sectors which they interested and to support the economy. Public banks have become inconvenient in time and have been less efficient in the rapidly developing banking sector and have adversely affected the sector. At the same time, these banks, which were expected to support the economy, became a burden for the state, and after the crises of November 2000 and February 2001, the regulation of the banking sector became inevitable. Under this regulation, some of the state banks were liquidated, transferred and had been included in the scope of restructuring. Within the framework of the restructuring program initiated in the banking sector, state banks have become more effective in the sector and have achieved a serious financial success with the arrangements made. In this study, primarily the positive development of the state banks as a result of the implementation of the Law No. 4603 and the Banking Sector Restructuring Program that prepared after the 2001 crisis was evaluated. Additionally, after the global crisis in 2008 it was determined that the public banks survived with the least damage. As a result, it has been concluded that the restructuring practices implemented on state-owned banks have achieved its purpose and contributed significantly to the sector.