IMF And World Bank Relations In Turkey

21 Pages 5182 Words

institutions, to ensure consistency of policy advice of both institutions, to enhance legitimacy of the program (IMF, 2000). In our research paper, first we try to explain the Financial Sector Assessment Program (FSAP) and IMF and the World Bank’s suggestions toward financial sector regulatory and supervisory bodies (RSB) and then, we try to analyze independency of RSB. When we analyze independency subject, we just concentrate on separate and independent RSB, as opposed regulatory and supervisory function inside the central bank (CB) and independency of CB. After this section we concentrate on independency of Turkish Banking Regulation and Supervision Agency (BRSA).
II. General Overview of The Financial Sector Assessment Program-FSAP
After increasing sequence of financial crises in emerging markets, both IMF and the World Bank were concentrated on financial sector of countries much more. Before this concentration, IMF generally helped to countries to improve their financial system on macroeconomic stability base rather than detailed suggestions. In 1980s many countries tried to liberalize their financial system and lived different experiences. In this transition period, there were many crises that these countries lived. Related to this development, IMF changed its direction and concentrated on links between financial system soundness and macroeconomic stability (Fischer, 2000). Along with liberalization and globalization movement, financial sector subject took a vital role because of contagion effect. Today, the crises affect all countries quickly and threat world financial system. Many IMF and the World Bank member countries, both industrialized and developing, have lived financial sector crises 1980s and 1990s. The intensity of financial sector crises proposed to the agenda of importance of well-regulated financial sector (of countries) to create financial stability overall of the world (Conthe, 2001).
As we mentioned abo...