The Improvement of Turkish banking sector during financial liberalisation period in financial marketing

Financial liberalisation came to an economic agenda during the 1970?s.According to this paradigm, main objective of these reforms are using the financialresources in a fruitful way by increase the role of market mechanism, eliminating thebarriers in front of international capital movements and removing all regulations uponthe financial markets. At the end of the liberalisation process these reforms will beresulted by increase in the saving rate, achieving the resonable unemployment rate andmacroeconomic stabilisation. However there is disappointment for develping countries.In contrast to desired outcome of financial liberalisation, it brings about macroeconomicunstability, foreign trade gap and financial crisis.Since 1980 Turkey has been liberalizing it?s financial markets as a keycomponent of the newly adopted export oriented growth model with structuraladjustment program. For this reason liberalisation was mainly focused on bankingsector. Because banking sector hold main percentage of the all financial assets in thefinancial market. And also there are expectations about appearing the outcome ofliberalisation process in rapid way. While the liberalisation in progress, in spite ofimprove in the some indicators ( inflation rate, saving rate, export ) and somerealization of the economic targets, and expanding the financial sectör and financialinstruments, the first financial crisis appear in 1982 ( Benker?s crisis ). At the later partof liberalisation, another crises occured in 1994, 2000 and 2001As a result of, liberalisation process in financial markets were started withno preparatory work, liberalisation process caused banking sector developed inunreliable way, neglected their primary objectives ( banking sector has failed to directfunds to manufacturing sector ), and remained them weak in capital accumulation. Soboth financial crisis was effected by these problems and macroeconomic imbalancesalso cause banking sector developed in inproper manner.vii