IMPACT OF THE BANKING SECTOR ON INCOME DISTRIBUTION: TURKEY EXAMPLE

Abstract

The banking sector is an important sub-sector within the financial system and plays a key role in the execution of activities between economic units. Because banks fulfill important functions within the economic system, such as financial intermediation, evaluating and monitoring requested loans, increasing the effectiveness of monetary policies, affecting the distribution of income and wealth created in society, and developing many national and international commercial transactions.When looked at, country economies need an advanced financial system organization in which they can accumulate capital efficiently and productively and use this savings in effective investments. Therefore, the growth and development of the banking sector, which is an important part of the financial system, means the growth and development of the economy, and the stronger and more robust the banking sector within the financial system, the higher the economic growth and development in that country. On the other hand, countries have certain goals that they want to achieve with the economic policies they create. Among these goals, the aim of ensuring a fair distribution of income generated in the economy or improving income distribution comes to the fore. Based on this perspective; in the study, the relationship between income distribution and the banking sector in the Turkish economy and the impact of banks on the distribution of income created in the economy in society were examined graphically for the period between 2000-2022 and the results obtained were presented.