Turkey : Non-Bank Financial Institutions and Capital Markets Report
Longstanding macroeconomic instability, and inflation in Turkey, have discouraged investment in financial assets, and a persistently high public sector borrowing requirement has crowded funding for the private sector. Notwithstanding, the Governmen...
| Main Author: | |
|---|---|
| Format: | Other Financial Sector Study |
| Language: | English en_US |
| Published: |
Washington, DC
2013
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2003/02/2159861/turkey-non-bank-financial-institutions-capital-markets-report http://hdl.handle.net/10986/14882 |
| Summary: | Longstanding macroeconomic instability,
and inflation in Turkey, have discouraged investment in
financial assets, and a persistently high public sector
borrowing requirement has crowded funding for the private
sector. Notwithstanding, the Government's ongoing
stabilization, and structural reforms, are improving the
prospects for the development of financial services, though
a series of policy issues should be addressed. This study
identifies such issues, and formulates recommendations to
better address them. Chapter I outlines the advantages of a
broad based, diversified financial services industry, lays
out the evidence of a clear correlation between financial
system development, and per capita income, and, analyzes the
outlook for such financial services industry over the next
five years. Chapter II, in addressing the mobilization of
savings, describes the extent to which macroeconomic
uncertainty, chronically high inflation, and ill-suited tax
policies have driven significant savings into real estate,
gold, and overseas bank accounts. Recommendations suggest
the development of a tax system that creates a level-playing
field for investment assets, encouraging investments in
longer-term/risk-based instruments, among others. Building
an institutional investor base is addressed in Chapter III,
where key issues are identified for developing the
insurance, private pension and mutual fund industries.
Chapters IV, V, and VI describe current developments of the
equity, debt and derivatives markets, focusing on best
practices to further develop venture capital, and, how to
strengthen, and improve corporate governance, accounting and
auditing standards. Finally, the need to rationalize the
atomized oversight structure is recommended, where
regulatory agencies should be responsible for supervising an
increasingly integrated financial services industry, in
addition to considerations on developing a holding company
regime for financial, and mixed conglomerates. |
|---|