http://www.bddk.org.tr/WebSitesi/english/Reports/Working_Papers/7018crisistostability_Turkey.pdf
The Swedish model
http://www.economist.com/blogs/freeexchange/2009/01/the_swedish_model
Bank Restructuring in a Systemic Crisis
http://www1.worldbank.org/finance/assets/images/Lind_paper.pdf
Eurozone can learn from our model, says Turkish finance minister
Unfortunately its leaders have failed to take the bold steps needed to solve it. It is clear what needs to be done and looking at Turkey's experience over the last ten years we would have a lot to offer them.'
He said the Turkish success story, which saw it move from a boom and bust economy to one of steady growth, lies in how it stabilised its debt to GDP levels.
In the past ten years it has been reduced from 80% to 40% following a major consolidation effort.
'It was tough but it was key to bringing down risk premiums,' said Simsek. 'The banking system was extremely weak and fragile. Our fiscal position was not sustainable so we prioritised these two things.'
'We liquidated around 20 banks, all the banks were transferred to an agency to resolve it. It was a hefty deal for tax payers.'
http://citywire.co.uk/global/eurozone-can-learn-from-our-model-says-turkish-finance-minister/a524431
'Because we had been badly burnt in the past we asked banks to have additional capital in reserves and when the crisis began we had capital ratios of up to 18% to 20%. If Basel III were implemented today Turkish banks would have double the capital required.'
Monday, 26 September 2011
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