The Double Function of Turkey’s Public Banks and Reinterpretation of Mandates during the Covid-19 Pandemic

Abstract

ABSTRACT Turkey’s public banks performed a double function during the Covid-19 pandemic, repeating but also extending the scope of their actions in the 2010s. These institutions provided temporary financial relief to low-income households, while simultaneously extending extraordinary support to capital groups organically linked to ruling circles. During this period, the public bank mandates were not legally revised but recurrently reinterpreted by state managers, postponing the financial troubles of some social groups and disproportionately benefiting corporations. Such public bank actions raise questions concerning a public purpose approach to public financial capacity during economic crises and emergencies. The double function of Turkish public banks in recent years indicates that short-term financial support to low-income groups worked almost as a countervailing intervention, yet producing contradictory results amid the lack of democratic oversight and strategies for the self-empowerment of disadvantaged groups.