Title: Potential insolvency, prudential regulation and supervision in emerging market banking systems: the case of Turkey

Authors: E. Nur Ozkan Gunay, Gokhan Gunay

Addresses: Department of International Trade, Bogazici University, Hisar Campus, P.O. Box 2, Bebek 34342, Istanbul, Turkey. ' Anadolubank, Cumhuriyet Cad. No: 77 34380, Bomonti, Istanbul, Turkey

Abstract: The crises in the last two decades underlined the importance of prudential and independent supervision, especially in emerging markets with inadequate legal, judicial and financial infrastructure. The 2000–2001 crises in Turkey showed that ineffective regulation, weak supervision and political interference aggravated the cost of the banking crisis. The aim of this paper is to discuss the efficacy of bank regulations and supervisory practices during the deregulation, pre-crisis and crisis periods in the Turkish banking sector. Turkey, the biggest candidate country in the EU, gives prime importance to the integration and adoption of both EU and international banking regulatory standards.

Keywords: banking supervision; banking regulation; Turkish banking sector; banking crisis; Turkey; banking regulatory standards; insolvency.

DOI: 10.1504/IJLSE.2007.014589

International Journal of Liability and Scientific Enquiry, 2007 Vol.1 No.1/2, pp.164 - 174

Published online: 17 Jul 2007 *

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