Permission for establising and operating of foreing banks in Turkey

[BUDAK, Emel]. [Permission for Establising and Operating of Foreing Banks in Turkey], [Thesis of Masters], Ankara, [2009].The banking sector plays an important role for the economic life and the financial sector. This role includes providing economic growth and maintaining economic stability. To reach these objectives, banking sector needs detailed rules and regulations. These regulations are enacted and controlled by governments because the health of the banking system has significant impact on the entire financial sector. As a result, government needs to legislate well in order to avoid possible risks caused by the banking sector.This thesis consists of two main sections. The first section focuses on the definition of banking sector and its scope, effects and role on the overall economy. This part also reviews the historical background of the Turkish banking system and the changes in Turkish Banking Act versus EU banking law legislation. Apart from the legal changes, foreign investments are examined both in theory and in practice according to law of non-citizens, which is part of private international law. There is also discussion of the Banking Regulation and Supervision Agency (BRSA) duties and the enforcement of The Banking Act by BRSA as ?independent regulatory agency?.In the second section, It is compared foreign bank investments to the Act of Foreign Direct Investment, which was introduced in 2003 to promote foreign direct investments in Turkey. Since Banking Act is a essential rule for banking sector, it is universally applied to any case relating to banking sector. As a result, Act of Foreign Direct Investment is put in to practice if there is no other special regulation or international treaty on foreign investments in Turkey.Last part of the thesis focuses on The Banking Act and the procedures for establishing and operating for a national bank or foreign bank in Turkey. These include banks headquartered abroad with representative offices and foreign brunches in Turkey. Revocation of establishment and operating permission and restriction of operating permission are also evaluated.Key Words1-Bank2-Law of Non- Citizens3-Permission of Establishment4-Permission of Operating5-Foreign Bank