Impact of banking practices in providing financial stability in Turkey

Financial system; actors such as fund providers, demanders, households, financial markets and financial markets. Domestic markets and domestic investors and savings owners operate in the financial system. Actors in the financial system develop and grow over the years. Financial actors liberalize and continue to operate internationally with the phenomenon of globalization. Banks accept deposits and accepting ethics direct loans to productive areas and make loans available to customers. Banks are the institutions that take on the role of safe intermediaries in the financial system by accepting the funds of the savings owners and lending to the customers in need of funds. Over the years, people have become more preferable to banks in order to evaluate their funds and provide funding needs. The safe intermediation of banks, providing reliable information, low transaction costs, the evaluation of funds in the right and efficient areas, and the safe storage of funds are of great importance. However, banks are affected by financial crises in the economy. If banks are not structurally strong, their degree of exposure to crises increases. As the banks are affected by the crisis, the depth of the crisis increases and embraces the entire financial system. In recent years, regulations have been made for banks to combat this. Basel regulations are especially important. Basel regulations have an impact on the banks' protection against risks. Financial stability is ensured by the successful functioning of the financial actors in the financial system. As banks act as intermediaries in the financial system, they contribute to financial stability. Banks provide loans to the needy in case of financial crisis and contraction. If these funds are evaluated in productive areas, new business areas will be opened. Consumption comes to life and the impact of the crisis is less felt. Banks support the development and growth of the financial system with the function of providing loans.