The main characteristics of Turkish banking system and its response to Dissertation

The main characteristics of Turkish banking system and its rejoinder to recent global monetary crisis - Dissertation Example62 Conclusion 64 Chapter Five 66 Conclusion 66 Table 1 68 Bibliography 71 Can Turkeys Banking System Act as a Model To Buffer Global Financial Crises? Introduction With the burst of the US property bubble in 2008, owe defaults increased astronomic in ally with irreparable ill-treat to global banking sectors and monetary institutions worldwide. A number of banks were hard hit by either non-performing loans or complicated financial assets arising under bad loans. As a consequence, actors in the market emerged as cautious which were further exacerbated by doubts about primary financial institutions solvency. ... Turkey also does not have an operating mortgage sector like the US has. Turkeys Central Banks macroeconomic policies and measures taking by Turkeys banks in chemical reaction to the global financial crisis also contributed to the limited impact of the 2008 global financial crisis of 2008.4 This dissertation conducts a critical analysis of the main characteristics of the Turkish banking system and its response to the recent global financial crisis of 2008-2009. The main purpose is to determine whether or not, Turkeys banking system represents a model for buffering the effects of global financial crises. This research is justified by the fact that the Turkish banking system faired relatively well during the recent global financial crisis of 2008-2009.5 At the same time, Turkeys real economy suffered serious damages, thus making Turkey an interesting case study. Thus this dissertation seeks to determine whether or not capital restructuring of financial institutions which creates a hard cap against loans and mortgages suppresses economic stimulation elsewhere. Profits during the global financial crisis of the Turkish banking system were impressive compared to that of other countries including developed economies.6 While banks all ov er the world were collapsing, Turkeys banks remained stable and registered profits.7 The Turkish banking systems ability to withstand the 2008-2009 global financial crisis is generally attributed to its regulatory framework and risk protocols.8 The Turkish banking system has learned a lot with respect to responding to economic shocks and risk management following the financial crises of 2000-2001.9 As a issuing the Turkish banking system devised