BÖLGESEL ÖRGÜTLER

Firstly, even in well equipped countries with 2-3 centuries of banking
experience prior to the beginning of their industrial transformation like Turkey, financial intermediation is not always able to provide financing to each activity sometimes due to focusing problems or sometimes economic value issues

While, on the one hand, financial institutions take in funds as financial
instruments, on the other hand, they give out loans. The survival of these institutions depends on their engagement in a fierce competition between other “fund seeking” persons or institutions for attracting depositors’ savings.

Net yield is the market interest rate determined based on risk and liquidity. For
example, creditors should consider a 2% research cost, 3% risk premium and %1 liquidity ratio for an interest at a rate of 12%, thus leaving the savings account holders with a ratio of 6%

High net yield on savings and low gross cost of borrowing would not only help increase loan purchase and sale, but would also boost investments and savings.

The evolution of financial system should be discussed based on structural changes in financial system, activities and instruments over time. As for its level of development, it depends on the financial conditions provided by the system itself, including sufficient integration between sectors.

According to Fry and Aghevli, number of banks and bank branches per capita are key indicators of monetization and financial intermediation.

Transformation of family members into wage workers would automatically contribute to the monetization as an income-generating activity (Emre Alkin et al, 2001). Considering the fact that personal saving is a variable that is inversely proportional to loan demand, it is inversely proportional to financial mediation, too.

In developing countries, the main purpose of the pre-1980s financial policies, (especially in the 1960s and the 70s) was to boost industry and development by providing low-cost financing.

Established in 1974 with concern for the possibility that international capital movements may lead to a global crisis, the Basel Committee for Banking Supervision (BCBS)

This need eventually led to the rise of Regional Development Banks, designed to provide financial and technical assistance for development in the abovementioned countries within their regions.

In the strictest sense, financial intermediation means the process of taking in funds from depositors and then lending them out to borrowers.

Mr = Financial Intermediation ratio.

In developing countries, the main purpose of the pre-1980s financial policies, (especially in the 1960s and the 70s) was to boost industry and development by providing low-cost financing.

Established in 1974 with concern for the possibility that international capital movements may lead to a global crisis, the Basel Committee for Banking Supervision (BCBS)- the BIS developed into a global meeting place for regulators and for developing international standards-has set forth the issues like business volume of each bank’s capital, whether banks have enough capital to protect themselves from high-risk, and relevant controls, in order to prevent risks that might arise within their own domestic economies.

Originally issued by the Basel Committee in 1997, the core principles for effective banking supervision were last revised by the Committee in September 2012. The revised Core Principles define 29 principles that are broadly categorised into two groups: the first group (1 to 13) focus on powers, responsibilities and functions of supervisors, while the second group (14 to 29) focus on prudential regulations and requirements for banks.

RDB usually refers to four institutions: African Development Bank (AfDB), Asian Development Bank (ADB), European Bank for Reconstruction and Development (EBRD) and Inter-American Development Bank (IDB). Although each RDB has its own legal and operational status, they all share a similar mandate and highly cooperate with each other.

A country’s voting shares and level of board representation are based on the size of its economy and its financial contributions to the institution. The United States is the single largest shareholder in the IDB and the EBRD. At the ADB, the United States is tied with Japan for the largest financial commitment. At the AfDB, the United States is the second largest shareholder after Nigeria. Among regional members, China and India are large contributors to the ADB; Egypt and South Africa are large contributors to the AfDB; Argentina, Brazil, and Venezuela are large contributors to the IDB; and Russia is a large contributor to the EBRD.

The headquarters of the RDBs are located in their respective region. The ADB headquarters is located in Philippines, with 29 country offices and representative offices in Tokyo, Frankfurt, and Washington, D.C. The AfDB headquarters is located in Côte d’Ivoire; but temporarily relocated in Tunisia due to political unrest in Côte d’Ivoire. The EBRD headquarters is located in in London with 34 county offices

ADB-Asian Development Bank

There are 67 member countries for the Asian Development Bank.