REGULATION STRUCTURE AND APPLICATIONS IN FINANCIAL MARKETS IN TURKEY

Abstract

Disruptions in the economy have a high potential to negatively affect the social structure and social order. In order to experience fewer disruptions in economies and to eliminate the disruptions more quickly, it is necessary to take some regulatory measures, called regulation. Regulation can generally be defined as the state regulating the economic activities of the private sector in a way that increases social welfare. Financial regulation is the rules and restrictions developed by the regulatory authority for the decisions and behaviors of financial agents in order to achieve maximum social benefit. Financial regulations are used to regulate financial markets in Turkey, as well as all over the world. In order to better understand the regulations and their consequences in the financial markets in Turkey, a brief explanation about financial regulations is made in this article and the structure and applications of financial regulations in Turkey are discussed. It is observed that the economic crisis experienced in 2000 and 2001 played a decisive role in shaping financial regulations in Turkey. With the comprehensive regulations implemented after these crises, it was seen that the actors regulating the financial market were the Central Bank of the Republic of Turkey, the Banking Regulation and Supervision Agency, the Savings Deposit Insurance Fund and the Banks Association of Turkey. It has been understood that many different types of regulation practices are carried out by these actors.