Turkish Premier on Reforms in Financial Sector

Saturday, 26 September 2009 12:45

Turkey's premier, who is currently in the United States to hold a series of talks, delivered a speech on the reforms carried out in the Turkish financial sector at the G-20 summit in Pittsburgh.

During his speech, Turkish Prime Minister Recep Tayyip Erdogan commented on the global economic crisis and the developments in Turkish finance system.

Erdogan also said that establishing auditing groups for financial institutions of systematical significance would be another effort to prevent crises.

"A simple but critical lesson we can draw from the global crisis is that the framework of regulation and supervision should be strengthened instead of increasing financial protectionism," Erdogan said.

"Turkey has taken major steps in its finance sector and in terms of reforms. It has seen the advantage of these steps during the crisis," he also said.

Erdogan said that the "open foreign exchange positions", which had been one of the major reasons of the problems experienced in the Turkish banking sector in 2001, had been taken under control and the sector did not have such a problem any more.

"Severe precautions have been taken in Turkey regarding the foreign exchange borrowing of the people who do not have an income in foreign currency. Our latest regulations strengthened such precautions. Thanks to our far-sighted approach on this issue, Turkish banking sector managed to differ from other countries during the crisis period," Erdogan said.

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