ARTICLE
TITLE

Regulatory Compliance Costs on International Banks in Turkey

SUMMARY

The Turkish government set a policy to become a regional financial center in 2007. This policy involved encouraging international banks to enter Turkey and take a more prominent role in the Turkish banking industry. Since then the progress has been slow to achieve this policy objective. The primary indicator of being a financial center is to have the presence of international banks. Even though there are many representative offices in Turkey, few of them changed their status to subsidiary or branch to this day. On the contrary, some international banks announced that they would downsize their operations. Representative offices have lower investment and compliance cost than that of branches and subsidiaries. Banking regulations in Turkey does not differentiate much by type, operations and size. Also international banks have to comply their head office rules in line with regulators in their home countries. In this article, we focus on the regulatory compliance costs on international banks to open branches and to establish subsidiaries with niche market strategy in Turkey. We argue that regulatory compliance costs play a major role on the reluctance of international banks’ lack of enthusiasm.

 Articles related

Heather N Rhodes, James A. Ligon    

This study aims to evaluate the effect of regulatory corporate governance mandates on the valuation of equity-issuing firms in the U.S. Using a matched sample, we examine how the Exchange Listing Requirements, specifically, and the Sarbanes-Oxley Act (SO... see more


Muhammad Mustapha Bagudo,Kamarul Bahrain Bin Abdul Manaf,Rokiah Bt. Ishak    

The study examines how proactive monitoring by regulatory authorities and external auditors affect compliance with International Financial Reporting Standard (IFRS) in Nigeria. Data is hand collected from 154 companies that mandatorily adopted IFRS in th... see more


Evelyn Lopes da Silva, Gabriela Cristina de Araújo Lima, Cássia Rita Pereira da Veiga    



Héctor Carvajal Romero, Mercedes Teijeiro Álvarez, María Teresa García Álvarez, Harry Vite Cevallos    

El crecimiento vertiginoso de la población a nivel mundial, incide en variables importantes para el diario vivir de las sociedades, a tal punto que en materia ambiental dentro del contexto de los residuos sólidos se debe establecer acciones necesarias pa... see more


Cynthia Paulina Cisneros Zúniga, Juan Giovani Sailema Armijo, Marco Rodrigo Mena Peralta    

La explotación laboral es uno de los fenómenos que aquejan la humanidad. La sociedad ecuatoriana no está exenta de este padecimiento. Los niños, niñas, adolescentes y embarazadas encabezan el eslabón de la sociedad más sufrida por los factores de riesgos... see more