GROWING IMPACT OF THE GLOBAL CRISIS AND THE TURKISH BANKING SECTOR IN THE 1929 WORLD ECONOMIC CRISIS
Journal Name:
- Khazar Journal of Humanities and Social Sciences
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Abstract (2. Language):
It was planned to boost the economy by means of the building sector in the U.S.A in 1923. It was encouraged the housing credit for the middle class by the mortgage system on the way of purchasing a property. The initial attractive housing credits such as the low and two years promoted interest rates and the following floating rate credits have converted into the non-performing loan. Here, also the banks, by collateralizing their retained notes of the housing credits and collaborating with the many banks (included with the European based banks) on debtor-creditor relationship have triggered the crisis.
The rapidly increasing number of housing drew down the housing prices sharply because of surplus supply after the expropriation of the houses based on credit problems through the banks and the recovery of the building sector. While the houses were valued at $150000 during the process of credit given by the banks, then couldn’t find a purchaser at a value of $50000 after the banks confiscation .The banks which were unsuccessful collecting their credits couldn’t fulfill their obligations to the other banks and got into a tight corner successively. The crisis was transferred to the Europe because of the European based banks and its relation with the crisis and finally spread to the world.
We conclude that there can be a connection with the 1929 crisis. The Turkish Bank system has the resistant structure against the global crisis after the experience gained in November 2000 and February 2001.
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