The general manager of the Turk Ekonomi Bank called on Turkey's new Banking Regulation and Supervision Agency to make public the measures it plans to take on the eight failed banks controlled by the Deposit Insurance Fund.
Akin Akbaygil said the problem could be solved by legislating for at transparency, which in any case would benefit the country. The Banking Regulation and Supervision Agency, a banking mega board, came into full power last week when it took charge of the Deposit Insurance Fund and the collapsed eight banks that earlier had been placed under the administration of the Treasury Undersecretariat. The cost of bailing out these banks would be met somehow, Akbaygil said, but cautioned that the public be told of the cost in question.
To manage a population and economy of this size, with such a small banking sector, you have to pay real interest rates of 18 to 20 percent, which is unparalleled anywhere in the world. It is impossible for Turkey
to achieve anything in the face of such interest rates. Turkey's development depends solely on the development of the banking sector.
Other sectors will follow behind." Drawing on the Swedish example, Akbaygil noted that Sweden, as the country with the highest concentration of capital, had taken the very important legislative measure of setting up a commission accountable to parliament to inform the public and heal the ailments of the banking sector." — (Albawaba-MEBG)
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