ABSTRACT
This chapter describes the structure of the Turkish financial sector and outstanding securities. It explains the size of the assets of non-bank financial intermediaries and the developments in bond and equity markets as well. The chapter discusses the impact of financial flows on gross domestic product growth and document the financial intermediation activity and the growth of the financial sector with reference to the increased level of financial integration. It provides an examination of post-2001 attempts to construct a regulatory framework not only in order to deepen market finance in Turkey, but also to adopt measures to minimize the threat of systemic risk. The chapter concludes with the main findings and underline the fact that neoliberal market finance has progressed some way in Turkey in the last decade, the legal framework has been revisited, and state restructuring implies the suppression of alternatives alongside the explicit support to the financial sector.
