Analysis of relation of profit and cost situation of Turkish republic central bank with economical conjuncture

General Description of Turkish Republic Central Bank constitutes thefist part of this master thesis entitled ?Analysis of Relation of Profit and CostSituation of Turkish Republic Central Bank with Economical Conjuncture?,under this title, description, history, roles, duties, authorities and policies ofCentral Bank of Turkish Republic, income/profit and outcome/cost factors ofCentral Bank of Turkish Republic, profit (loss) statement of Central Bank ofTurkish Republic and Profit (Loss) Account are discussed. In this part, one ofthe most important points is substitution of the Law of Central Bank No. 1211with the Law on 25th April 2001 No. 4651. With new Law of Central Bank,using sources of Central Bank of Turkish Republic for public financing wascome to end, Central Bank of Turkish Republic had its independence andbasic aim of Central Bank became providing price stabilization.In the second part of thesis, under title of Profit (Loss) Situation ofCentral Bank according to seasons, Profit / (Loss) of Central Bank isexamined. In this section, important point is that Independence AuditingReports including Profit Loss Statement of Central Bank of Turkish Republicstarted to be published for public on the basis of concepts ?Independence?,?Transparency? and ?Responsibility? in 2001.In the third part, under title of Situation of Economical Conjunctureaccording to seasons, Turkey Economy is examined. When the economy isexamined in this part, used criteria are limited; the most important point isthat ?Independence of Central Bank of Turkish Republic? on the basis of lawsubstitution worked especially because of discusses after economical crisesin the country. On this ground, economical crises have determining characterin the scope of operation.According to the examination in the scope of this study; fordetermination of the economical seasons, crises until 1980 are discussed inthe period of 1933-1980, because the crises before 1980 happened in theenvironment, where goods and effort markets could not be developed andexchange and money markets could not be available; the periods 1980-1994,1994-1998, 1998-2001 and 2001-2006 1980 are examined separately,because global-source financial crises happened after 1980.As a result; after the policies related to price stabilization, Central Bankof Turkish Republic can make profit or lose money; but, that Central Bankstarted to lose money after it made profit until Law Substitution in 2001 doesnot mean a weakness in financial discipline. Because, the losses of centralbanks are accepted as problem only when these losses jeopardize theinflation aims, and as long as they can implement money policies and reachtheir aims, there is no importance in profits and losses after their activities.