Abstract:
The banking industry possesses a unique property that is unlike to other sectors with respect to
supplying liquidity and financial strength for the economy and transaction operations However,
despite their significance, banking industries in the world are subject to various crises and foreign
interventions that could affect the financial industry negatively. This study describes the
background of the Turkish Banking Sector, explains the reasons for the three major crises it was
subjected to in 1994, 2001 and 2002 that resulted from numerous factors such as insufficient
implementation of regulations, inadequate depth of the capital markets, lack of assessment of risk,
inadequate managerial applications and excessive lending to incorporated institutions. The study
also dwells on the restructuring process that has been continuing for more than two decades,
reasons of foreign entry to the Turkish Banking Industry, as well as explains the reflections of
foreign entry on the national banking industry depending on various comprehensive and credible
national and international publications.
