The effects of domestic a debt policies on the banking sector in Turkey during financial liberalization

Along with the globalization phenomenon occurrence in all over the world, like many countries in which liberalization politics have emerged and been developing, in Turkey, also, many problems have occurred because of the step by step applications of liberalization policies since 1980s. Since those policies were constituted without the sufficient infrastructure, the fragility of the financial system in our country has increased, crises have occurred, and huge public deficits have emerged. Banks, that have a big importance in our financial system, affected the most by these negative changes; and banking sector has become an institution that finances the public instead of financing the developments in economy.Therefore, the ?demand sourcing? structure of the public and the ?supply sourcing? structure of the banking sector, has acted a big role in the evolving bank structure in Turkey,up to today?s current situation. In this study, the effects of the internal borrowing policies in the financial liberalization process in Turkey, on banking sector are analyzed