Turkish Banking has been effected sometimes positively and sometimes negatively by the unstable structure of the economy. As examined in the article, while insturements !ike government bonds usedin financing public expenditures effect profitability of the banking seetar positively,inflationary process has increased the risks of the banks. White stabilisation measures aimed at the prevention of inflation decrease debt demand of the public and decreased interest rates, banks may be adversely affected by this situation. On the other hand developments caused by the international competition and EU membership process, which are external factors, continue to effect Turkish banking The most important po int that must be considered by our country's banking seetar is that in the last three years, which have started with the disinjlation process, twenty banks have been placed under public supervision and public existence in the seetar has moved to an other dimension.
Key words: na Article Language: EnglishTurkish
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