Financing of foreign trade and role of banks in Turkey

This study has been prepared as postgraduate thesis at Hasan Kalyoncu University, Social Sciences Institute. In the study, the roles of banks on financing foreign trade and the methods of financing is discussed in detail. The study consists of five sections including introduction and conclusion. In second section, financing of foreing trade is discussed theoretically. The history of banking, classification of banking and the roles of banks on financing of foreign trade are studied. In the third section,"how do banks became international?" and "which financing and payment methods are used on foreign trade?" are explained. In fourth section, foreign trade in Turkey is explained for - the period of 1980-2013, customs union period and the period after customs union separately. In conclusion, it is stated that from past to present, the baking, which is based on long history, is essential factor for economy. After polices on foreign trade expantion is adopted, the baking sector expanded to foreign trade and with the consept of corresponding banking the foreign trade operations increased. Foreign trade of Turkey is analysed and it is concluded that in transactions of import advance payment method is used and in transactions of export cash against goods method is used and the side taking the risk over financing of foreign trade is the banks.