Longstanding macroeconomic instability,and inflation in Turkey, have discouraged investment infinancial assets, and a persistently high public sectorborrowing requirement has crowded funding for the privatesector. Notwithstanding, the Government's ongoingstabilization, and structural reforms, are improving theprospects for the development of financial services, thougha series of policy issues should be addressed. This studyidentifies such issues, and formulates recommendations tobetter address them. Chapter I outlines the advantages of abroad based, diversified financial services industry, laysout the evidence of a clear correlation between financialsystem development, and per capita income, and, analyzes theoutlook for such financial services industry over the nextfive years. Chapter II, in addressing the mobilization ofsavings, describes the extent to which macroeconomicuncertainty, chronically high inflation, and ill-suited taxpolicies have driven significant savings into real estate,gold, and overseas bank accounts. Recommendations suggestthe development of a tax system that creates a level-playingfield for investment assets, encouraging investments inlonger-term/risk-based instruments, among others. Buildingan institutional investor base is addressed in Chapter III,where key issues are identified for developing theinsurance, private pension and mutual fund industries.Chapters IV, V, and VI describe current developments of theequity, debt and derivatives markets, focusing on bestpractices to further develop venture capital, and, how tostrengthen, and improve corporate governance, accounting andauditing standards. Finally, the need to rationalize theatomized oversight structure is recommended, whereregulatory agencies should be responsible for supervising anincreasingly integrated financial services industry, inaddition to considerations on developing a holding companyregime for financial, and mixed conglomerates.
PDF
download
878987797
028-85220240
