National Creditors: National and Local Banks (Establishment Environment, Capital Structures, Political Links)

Abstract

The practice of establishing joint-stock companies as a means to of economic development dates as far back to the pre-Tanzimat period in the Ottoman Empire. This idea gained wider currency during the Second Constitutional Era.
 The period in question witnessed a remarkable increase in the number of newly-established companies, which also included banks. Thus, the present study is intended to analyze these banks within the framework of the National Economy (Milli İktisat) policies and state-market relations adopted under the Committee of Union and Progress CUP rule.
 As its methodology, the study adopts a selective analysis of banks established in line with the National Economy policies. In this respect, it examined the organizational structure, origin and objectives of banks, regions and their interactions with their respective host communities and regions by the basis of the prevailing economic policies of the period.