Financial Institutions in Turkey — страница 7

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requirements of these banks were provided either by their shareholders and or by the allocation of subordinated loans given by the SDIF upon BRSA decisions. With the improvement observed in profitability, the average capital adequacy ratio of the private banks was recorded at 28.2% as of December 2004.  4) Strengthening the regulatory and supervisory framework Concurrently with the financial and operational restructuring of the banking sector, significant progress has been made in legal and institutional regulations. Within this context, regulations were issued to prevent risk concentration in loans, limit participation of banks in non-bank financial institutions and ensure preparation and disclosure of the balance sheets of the banks in compliance with international

accounting standards. Among many other structural reforms, the banking reform intended to upgrade and modernize the current rules and in general covered the following banking related areas: capital adequacy, foreign exchange exposure, internal control and risk management, deposit guarantee schemes, accounting standards for financial disclosure purposes, prudential reporting and loan-loss provisions. As a result, the restructuring program resulted in the following in the banking sector:  The banking sector entered a consolidation process. The significance of state-owned and SDIF banks in the system has declined. Financial risks in the banking sector have been reduced to manageable levels. The capital structure of the sector has been strengthened. The sector has re-entered a

growth period. The profitability performance of private banks has improved and state-owned banks have started to generate profit. At the end of September 2004, the Turkish banks numbers were as follow: Number of Banks                                           And lastly, let’s say few words on this table. As we can see, after banking crisis in November 2000 and February 2001, the numbers of commercial banks as well as all other banks has declined significantly. If in 1999 number of commercial banks were 62, in 2004 it has declined to 35. These crisis’s has huge negative

impact on Turkish banking system, but nevertheless, it is still take the bull by the horns, and as many foreign banking giants as HSBC, Citibank, Fortis have entered the Turkish banking market it is sounds like it’s has a potential capacity and bright future. References: www.tsrsb.org.tr F.S. Mishkin “The Economics of Money, Banking and Financial Markets” Colombia University Press http://www.byegm.gov.tr http://www.sigortacigazetesi.com.tr http://www.die.gov.tr http://www.marsh.com.tr