Kenc, TuralayTurhan, M. IbrahimYildirim, Onur2012-03-192012-03-192011-10-01https://hdl.handle.net/10986/3598This brief country case study on Turkey aims to summarize the fundamental developments in the banking sector, which represents almost 90 percent of the financial sector in the country. The brief has two parts. The first covers the 2001 financial crisis and the developments until end of 2007, the year before the global financial crisis of 2008 started. The second part focuses on the macro-prudential policies applied by the Central Bank of the Republic of Turkey in response to the global financial crisis in three phases: (i) full liquidity support after Lehman Brothers' collapse (September 2008), (ii) the exit strategy (April 2010), and (iii) the new policy mix (final quarter of 2010).CC BY 3.0 IGOADVANCED ECONOMIESASSET QUALITYASSETSASSETS RATIOBALANCE OF PAYMENTSBALANCE SHEETBANK BALANCE SHEETSBANK CREDITSBANK OF ENGLANDBANK OF JAPANBANK POLICIESBANK RUNBANKING CRISISBANKING LAWBANKING REGULATIONBANKING SECTORBANKING SYSTEMBORROWINGBUFFERCAPITAL ACCOUNTSCAPITAL ADEQUACYCAPITAL ADEQUACY RATIOSCAPITAL FLOWSCAPITAL GAINCAPITAL INFLOWCAPITAL INFLOWSCAPITAL STRUCTURECAPITAL STRUCTURESCENTRAL BANKCENTRAL BANK POLICIESCENTRAL BANKSCONSOLIDATIONCONSOLIDATION PROCESSCONSUMER CREDITSCONSUMER LOANSCONSUMER PRICE INFLATIONCORPORATE GOVERNANCECOUNTRY ECONOMIESCREDIT CARDCREDIT CARDSCREDIT EXPANSIONCREDIT GROWTHCREDIT MARKETSCREDIT RISKCREDITORSCURRENCY SWAPSCURRENT ACCOUNTCURRENT ACCOUNT BALANCECURRENT ACCOUNT DEFICITDEBT STOCKDEBTORSDEFICITSDEMAND DEPOSITSDEPOSIT INSURANCEDEPOSIT INSURANCE SCHEMESDEPOSIT INTERESTDEPOSIT INTEREST RATESDEPOSITSDEPRECIATIONDOMESTIC DEMANDDOMESTIC LIQUIDITYDUE DILIGENCEECONOMIC CRISISECONOMIC GROWTHECONOMIC MODELECONOMIC POLICIESEMERGING ECONOMIESEMERGING MARKETEMERGING MARKET COUNTRIESEMERGING MARKET ECONOMIESEMERGING MARKETSEUROPEAN CENTRAL BANKEXCESS LIQUIDITYEXCHANGE RATEEXCHANGE RATE CHANNELEXCHANGE RATE MISALIGNMENTSEXCHANGE RATE POLICYEXCHANGE RATE REGIMEEXCHANGE RATE UNCERTAINTYEXCHANGE RATESEXCHANGE-RATEEXIT STRATEGYFEDERAL RESERVEFINANCIAL CRISISFINANCIAL DEEPENINGFINANCIAL INSTITUTIONSFINANCIAL MARKETSFINANCIAL REGULATIONFINANCIAL RISKSFINANCIAL SECTORFINANCIAL STABILITYFINANCIAL STABILITY OBJECTIVEFINANCIAL STABILITY OBJECTIVESFISCAL DISCIPLINEFISCAL POLICYFOREIGN BANKSFOREIGN CURRENCYFOREIGN CURRENCY RISKFOREIGN CURRENCY RISKSFOREIGN EXCHANGEFREE BANKINGGOOD GOVERNANCEGOVERNANCE PRACTICESGOVERNMENT BUDGETGOVERNMENT BUDGET DEFICITGOVERNMENT DEBTGOVERNMENT SECURITIESGRACE PERIODGROSS DOMESTIC PRODUCTGROWTH RATEGROWTH RATESHIGH INFLATIONHOLDINGHOLDING COMPANIESHOLDINGSHOUSINGILLIQUIDITYIMPORTIMPORT DEMANDIMPORTSINFLATIONINFLATION RATEINFLATION RATESINFLATION REPORTINFLATION TARGETINFLATION TARGETINGINFLATION TARGETING FRAMEWORKINFLATION TARGETSINTEREST RATEINTEREST RATE ADJUSTMENTINTEREST RATE DIFFERENTIALINTEREST RATE DIFFERENTIALSINTEREST RATESINTEREST-RATEINTERNATIONAL BANKINVESTINGLEGAL ENVIRONMENTLIQUIDITYLIQUIDITY CONDITIONSLIQUIDITY MANAGEMENTLIQUIDITY RISKSLIQUIDITY SUPPORTLOANMACROECONOMIC ENVIRONMENTMARKET PARTICIPANTSMARKET SHARESMATURITIESMATURITYMATURITY EXTENSIONMATURITY MISMATCHMATURITY MISMATCHESMONETARY EXPANSIONMONETARY FUNDMONETARY POLICYMONEY MARKETMONEY MARKETSMORAL HAZARDMORTGAGESNONPERFORMING LOANSNPLOPERATIONAL RISKPOLICY RESPONSEPRICE STABILITYPRICE STABILITY OBJECTIVESPRINCIPAL REPAYMENTPRIVATE BANKPRIVATE BANKSPROFITABILITYPUBLIC BANKSPUBLIC DEBTPUBLIC DEBT INSTRUMENTSPUBLIC DEFICITSRAPID CREDIT EXPANSIONREAL APPRECIATIONREAL ESTATE LOANSREAL INTERESTREAL INTEREST RATESREAL SECTORRECESSIONRECESSIONSREGULATORY FRAMEWORKREMUNERATIONREPOREPO AUCTIONSREPO RATERESERVERESERVE ACCUMULATIONRESERVE RATIOSRESERVE REQUIREMENTSRESERVESRISK AVERSIONRISK MANAGEMENTSAVINGSSAVINGS DEPOSITSHARE OF CREDITSSHORT-TERM INTEREST RATESHORT-TERM INTEREST RATESSHORT-TERM RATESSLOWDOWNSOVEREIGN DEBTSPECULATIVE INFLOWSSTATE BANKSSUPPLY CONDITIONSSUSTAINABLE GROWTHSWAPSWAP MARKETSSWAPSTARGET GROWTH RATETAXTAX DEDUCTIONTAX HIKESTOTAL CREDITTOTAL CREDITSTRANSACTIONTREASURYTREASURY BONDSUPWARD PRESSUREWEIGHTSWITHDRAWALWORKING CAPITALYIELD CURVEYIELD CURVESWorld Bank10.1596/1813-9450-5834