Financial Interventions

This book presents evidences on how the financial§interventions §have effects on the balance sheets of banks in the§Turkey and §therefore, on the economy, during normal times and §during crises. As happened in the financial crisis of§2001 in Turkey, §the effects of the Global Crisis of 2008 spread out§from US economy §on Turkish economy has been implying that financial§interventions §results from the desire to prevent banking and§financial crises so §that the worst business cycle contractions can be§avoided. Thus, §chapter one discusses the bases of the§interventionist framework §initiated by the Turkish government. Chapter two§draws an attention §to how the banking sector has been shaped by the§financial §interventions initiated by the government. Chapter§three explores §bank capital channel, regulatory effects, and§riskiness in the TBS, §and last one deals with the issue of crowding out,§interest and §exchange rate shocks, and bank lending in Turkey. The§book should §help shed some light on understanding of the issues§of the §operation of banking system, monetary theory and policy §application. It should be especially useful to§professionals in §economics and finance fields.