Publication: Non-bank Financial Institutions and Capital Markets in Turkey
Date
2003-04
ISSN
Published
2003-04
Author(s)
World Bank
Abstract
This study analyses the state of
development, and prospects of future growth of Turkish
non-bank financial institutions, and capital markets.
Currently, credit markets in Turkey are dominated by
banking, and capital markets are dominated by Government
securities. Longstanding macro-economic instability, and
inflation have discouraged investment in financial assets,
and crowded out funding for the private sector. The
resulting lack of depth, and breadth has made the financial
sector vulnerable to shocks, resulting in repeated crises,
and, has reduced its intermediation efficiency. To enhance
the financial sector's capacity to support private
sector development, and economic growth, and to reduce its
vulnerability to shocks, non-bank sources of finance should
be developed. The report identifies the key policy issues
that should be addressed for this purpose. The discussion,
and policy recommendations are structured around the
following leading themes: a) mobilizing savings; b) building
an institutional investor base, comprising insurance
companies, private pension funds, and mutual funds; c)
developing equity, debt, and derivative markets; d)
developing leasing, factoring, and venture capital
companies; and, e) strengthening confidence in financial
markets through improved corporate governance, accounting
and auditing standards, and practices, and, financial sector
regulation, and supervision.
Citation
“World Bank. 2003. Non-bank Financial Institutions and Capital Markets in Turkey. World Bank Country Study;. © Washington, DC. http://openknowledge.worldbank.org/entities/publication/55ac2e9a-a1a4-5641-990f-4d76e9e01518 License: CC BY 3.0 IGO.”