Politics and Profit: The National Bank of Turkey Revisited

Abstract

As part of her research into European economic activity in the Middle East in the early 20th century, Marian Kent published an article in 1975 on the National Bank of Turkey entided Agent of empire? National Bank of Turkey and British foreign policy.1 Using Foreign Office documents and the private papers of some of the key civil servants involved, Kent comprehen sively analysed the creation and chequered existence of this troubled enter prise, which was registered in Istanbul but founded with British capital. National Bank enjoyed the initial support of the British and Ottoman gov ernments, which were both keen to benefit financially and politically from improved commercial relations. Soon after its foundation in 1909, however, the National Banks directors realized that they faced stiff competition from French interests, largely in the form of the Imperial Ottoman Bank, and that the Foreign Office would not jeopardize the entente cordiale by supporting competition with French business. Kent concluded that: The British Gov ernments firm attachment to the policy of Anglo-French co-operation meant that the [National] Bank [of Turkey] received neither leadership nor true independent support from the Foreign Office, but a vacillating and half hearted toleration.2