The Effect of Global Financial Crisis upon the Turkish Bank Sector 1990 – 2009

Financial markets had witnessed a transfer from traditional bank works represented by accepting deposits and lending into playing a role more comprehensive in states economies. Bank sector represents a huge part in Turkish financial system in economy mechanism. Most operations and activities for capital markets are made by banks. The paper aims at studying Turkish bank sector and how it is connected by the Turkish economy and how it is being affected by the world financial crisis in 2008 and the local financial crises happened in Turkish economy after 1980. The economic openness policy and structural fixation had been applied. Although bank sector had been affected by local financial crises for the years 1994, 2001 but still the structural steps and legal procedures taken by the Turkish government in reforming both financial and bank systems after 2001 crisis which led to flourishing Turkey economically in the previous decade. This is clear in different economic indicators like the decrease of inflation, unemployment and the increase of economic growth. But the global financial crisis in 2008 affected the Turkish economy partially and succeeded in 2009 in getting rid of its negative effects.