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Bullion

Keywords

Turkey, Banking reforms, Bank consolidation.

Abstract

Countries reform their banking sectors for a number of reasons, including structural, capitalization and ownership issues. Consequently, the objectives of the reforms can hardly be the same in all countries. This paper is presented on the basis that an overview of the banking reform in the lessons Nigeria could learn from it. The paper is structured into seven sections. the next section following this introduction identifies some of the key features of Turkish banking system pre-reform era of 2001, section three deals on the drivers of banking reform in the country. section four reviews some of the actions taken in implementing the programme, while section five and six respectively, discusses the results and lessons from the banking reforms in Turkey. A brief conclusion in section seven ends the paper. The study suggest that the pay-off from the reform justifies the exercise. However, as has always been the experience, the seeming end of one reform produces new challenges that may necessitate further reforms. Thus, as the Turkish Banking sector stabllizes and perhaps grows, it is imperative that it should prepare for new reforms to meet challenges in the global banking market. This is particularly true with regard to its capacity for mega businesses and the privatization of state owned banks, three of which were still in existence as at end of 2004.

Author Bio

The author is a staff of Chartered Instituted of Bankers in Nigeria (CIBN).

Publication Title

CBN Bullion

Issue

2

Volume

29

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