Analysis of consolidation process in foreing banks and Turkey applications

Globalization is a multi-dimensional concept and stands out with its economic dimension. With the effect of developments in information and communication technologies, the financial sector is one of the fastest sectors in which globalization is experienced. Financial globalization, which is defined as a cross-border financial integration process, is an important notion. In January 24 1980 international expansion decisions relevant started with the liberalization process in Turkey. With the introduction of financial globalization, the barriers to foreign capital investments have been removed and foreign capital investments have increased. The banking sector was one of the main areas where capital investments were concentrated. Foreign capital investments in the banking sector led to an increase in consolidations. As a reason of the concentration in the consolidations, the share of foreign banks in the sector increased. In this study, it is aimed to make recommendations for the sector by interpreting the effects of the consolidations in the Turkish banking sector on the banks and the national economy. In this respect, the process of financial globalization and the effects of foreign banks have been examined. Garanti BBVA and QNB Finansbank were selected among the foreign capital banks that have a significant share in the Turkish banking sector. The financial statements of the banks were researched and liquidity, profitability, asset quality and capital adequacy ratios were analyzed. Before and after consolidation, their financial position has been reviewed and interpreted. In addition, the effects of the consolidation process on the stock prices of banks were examined.