Turkey : Corporate Sector Impact Assessment Report
In February 2001, Turkey was hit by its deepest economic and financial crisis since World War II, prompting a severe decline in business activity. The adverse effects of the crisis were felt throughout the economy-starting in the public sector, spr...
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| Format: | Other Financial Sector Study |
| Language: | English en_US |
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Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2003/03/2185245/turkey-corporate-sector-impact-assessment-report http://hdl.handle.net/10986/14870 |
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okr-10986-14870 |
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| recordtype |
oai_dc |
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Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
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World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCOUNTING AFFILIATES ASSET MANAGEMENT BANK LIABILITIES BANK RECAPITALIZATION BANK RESTRUCTURING BANKING LAW BANKING REGULATION BANKING SERVICES BANKRUPTCY BORROWING CAPITAL ADEQUACY CAPITAL MARKETS CAPITAL REQUIREMENTS COMMERCIAL BANK LOANS COMPANY CONGLOMERATES CONSOLIDATION CORPORATE DEBT CORPORATE GOVERNANCE CORPORATE PERFORMANCE CORPORATE RESTRUCTURING CORPORATION CORPORATIONS DEBT DEBT RESTRUCTURING DEPOSIT INSURANCE DEVELOPMENT BANKS ECONOMIC CONDITIONS ECONOMIC GROWTH EMPLOYMENT EQUITY CAPITAL FINANCIAL DATA FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARIES FINANCIAL REPORTING FINANCIAL RESTRUCTURING FIRM SIZE FIRMS FOREIGN DIRECT INVESTMENT FOREIGN EXCHANGE IMPAIRED ASSETS INFLATION INFORMATION DISCLOSURE INTEREST RATES INTERNATIONAL ACCOUNTING STANDARDS INTERNATIONAL BANKS KOREAN DEVELOPMENT BANK LEASING LEGAL FRAMEWORK LENDERS LIQUID ASSETS LIQUIDATION LIQUIDITY LISTED COMPANIES LOCAL FINANCIAL INSTITUTIONS MANUFACTURERS MATURITIES MERGERS MICROENTERPRISES MICROFINANCE MULTINATIONAL COMPANIES NONBANK FINANCIAL INSTITUTIONS NONGOVERNMENTAL ORGANIZATIONS NONPERFORMING LOANS OFFERINGS OPERATING COSTS PRIVATE BANKS PRIVATE CAPITAL PRIVATE COMMERCIAL BANKS PRIVATIZATION PRODUCTIVITY PROFITABILITY PUBLIC DEBT REAL SECTOR REGULATORY FORBEARANCE REORGANIZATION SALES OF ASSETS SAVINGS SHAREHOLDERS SMALL BANKS SMALL FIRMS STATE BANKS SUBSIDIARIES SUPPLIERS TRANSPARENCY WORKING CAPITAL CORPORATE FINANCE CORPORATE GOVERNANCE IMPACT ASSESSMENT FINANCIAL INSTITUTIONS BANKING SYSTEMS CREDITWORTHINESS RESTRUCTURING PRIVATIZATION DEBT RESOLUTION POLICY FRAMEWORK STRUCTURAL REFORMS FOREIGN DIRECT INVESTMENTS FINANCING OPTIONS MACROECONOMIC STABILITY |
| spellingShingle |
ACCOUNTING AFFILIATES ASSET MANAGEMENT BANK LIABILITIES BANK RECAPITALIZATION BANK RESTRUCTURING BANKING LAW BANKING REGULATION BANKING SERVICES BANKRUPTCY BORROWING CAPITAL ADEQUACY CAPITAL MARKETS CAPITAL REQUIREMENTS COMMERCIAL BANK LOANS COMPANY CONGLOMERATES CONSOLIDATION CORPORATE DEBT CORPORATE GOVERNANCE CORPORATE PERFORMANCE CORPORATE RESTRUCTURING CORPORATION CORPORATIONS DEBT DEBT RESTRUCTURING DEPOSIT INSURANCE DEVELOPMENT BANKS ECONOMIC CONDITIONS ECONOMIC GROWTH EMPLOYMENT EQUITY CAPITAL FINANCIAL DATA FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARIES FINANCIAL REPORTING FINANCIAL RESTRUCTURING FIRM SIZE FIRMS FOREIGN DIRECT INVESTMENT FOREIGN EXCHANGE IMPAIRED ASSETS INFLATION INFORMATION DISCLOSURE INTEREST RATES INTERNATIONAL ACCOUNTING STANDARDS INTERNATIONAL BANKS KOREAN DEVELOPMENT BANK LEASING LEGAL FRAMEWORK LENDERS LIQUID ASSETS LIQUIDATION LIQUIDITY LISTED COMPANIES LOCAL FINANCIAL INSTITUTIONS MANUFACTURERS MATURITIES MERGERS MICROENTERPRISES MICROFINANCE MULTINATIONAL COMPANIES NONBANK FINANCIAL INSTITUTIONS NONGOVERNMENTAL ORGANIZATIONS NONPERFORMING LOANS OFFERINGS OPERATING COSTS PRIVATE BANKS PRIVATE CAPITAL PRIVATE COMMERCIAL BANKS PRIVATIZATION PRODUCTIVITY PROFITABILITY PUBLIC DEBT REAL SECTOR REGULATORY FORBEARANCE REORGANIZATION SALES OF ASSETS SAVINGS SHAREHOLDERS SMALL BANKS SMALL FIRMS STATE BANKS SUBSIDIARIES SUPPLIERS TRANSPARENCY WORKING CAPITAL CORPORATE FINANCE CORPORATE GOVERNANCE IMPACT ASSESSMENT FINANCIAL INSTITUTIONS BANKING SYSTEMS CREDITWORTHINESS RESTRUCTURING PRIVATIZATION DEBT RESOLUTION POLICY FRAMEWORK STRUCTURAL REFORMS FOREIGN DIRECT INVESTMENTS FINANCING OPTIONS MACROECONOMIC STABILITY World Bank Turkey : Corporate Sector Impact Assessment Report |
| geographic_facet |
Europe and Central Asia Turkey |
| description |
In February 2001, Turkey was hit by its
deepest economic and financial crisis since World War II,
prompting a severe decline in business activity. The adverse
effects of the crisis were felt throughout the
economy-starting in the public sector, spreading to the
financial sector, and, causing increasing distress in the
real sector. To restore growth and return companies to
profitability, Turkey urgently needs to implement a
comprehensive corporate restructuring program. Moreover,
simultaneous resolution efforts are needed in cases where
corporate distress is creating distress for financial
institutions. The report explores the significance and depth
of the crisis, which includes an analysis of corporate
perceptions of the crisis, and corporate distress. Several
factors will limit the ability of Turkish financial
institutions to resolve distress among corporate borrowers.
Weak insolvency and foreclosure procedures may encourage a
race to seize collateral, inhibiting orderly workouts of
non-liquid but viable companies. Small, capital-weakened
banks could be particularly nettlesome in corporate workout
negotiations. Banks need to recognize that such workouts can
reduce non-performing loans, and restore their clients'
creditworthiness. In addition, the Banking Regulation and
Supervision Agency needs to develop policies that encourage
banks to participate in voluntary workouts. Drawing on
various models worldwide, recommendations suggest:
resolution strategies to help banks and firms resolve their
"mutual hostage'' dilemma; policy changes for
the Government to facilitate resolution and attract foreign
direct investment; and, financing measures to help firms
overcome the credit crunch. Recommendations are also split
between short-term measures, and medium-term measures -
these medium-term measures are crucial because corporate
distress will likely continue well beyond the initial
macroeconomic recovery, while many of these measures, such
as facilitating foreign direct investment and improving the
management and transparency of large corporate groups, will
have long-lasting effects. |
| format |
Economic & Sector Work :: Other Financial Sector Study |
| author |
World Bank |
| author_facet |
World Bank |
| author_sort |
World Bank |
| title |
Turkey : Corporate Sector Impact Assessment Report |
| title_short |
Turkey : Corporate Sector Impact Assessment Report |
| title_full |
Turkey : Corporate Sector Impact Assessment Report |
| title_fullStr |
Turkey : Corporate Sector Impact Assessment Report |
| title_full_unstemmed |
Turkey : Corporate Sector Impact Assessment Report |
| title_sort |
turkey : corporate sector impact assessment report |
| publisher |
Washington, DC |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2003/03/2185245/turkey-corporate-sector-impact-assessment-report http://hdl.handle.net/10986/14870 |
| _version_ |
1764427876193533952 |
| spelling |
okr-10986-148702021-04-23T14:03:16Z Turkey : Corporate Sector Impact Assessment Report World Bank ACCOUNTING AFFILIATES ASSET MANAGEMENT BANK LIABILITIES BANK RECAPITALIZATION BANK RESTRUCTURING BANKING LAW BANKING REGULATION BANKING SERVICES BANKRUPTCY BORROWING CAPITAL ADEQUACY CAPITAL MARKETS CAPITAL REQUIREMENTS COMMERCIAL BANK LOANS COMPANY CONGLOMERATES CONSOLIDATION CORPORATE DEBT CORPORATE GOVERNANCE CORPORATE PERFORMANCE CORPORATE RESTRUCTURING CORPORATION CORPORATIONS DEBT DEBT RESTRUCTURING DEPOSIT INSURANCE DEVELOPMENT BANKS ECONOMIC CONDITIONS ECONOMIC GROWTH EMPLOYMENT EQUITY CAPITAL FINANCIAL DATA FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARIES FINANCIAL REPORTING FINANCIAL RESTRUCTURING FIRM SIZE FIRMS FOREIGN DIRECT INVESTMENT FOREIGN EXCHANGE IMPAIRED ASSETS INFLATION INFORMATION DISCLOSURE INTEREST RATES INTERNATIONAL ACCOUNTING STANDARDS INTERNATIONAL BANKS KOREAN DEVELOPMENT BANK LEASING LEGAL FRAMEWORK LENDERS LIQUID ASSETS LIQUIDATION LIQUIDITY LISTED COMPANIES LOCAL FINANCIAL INSTITUTIONS MANUFACTURERS MATURITIES MERGERS MICROENTERPRISES MICROFINANCE MULTINATIONAL COMPANIES NONBANK FINANCIAL INSTITUTIONS NONGOVERNMENTAL ORGANIZATIONS NONPERFORMING LOANS OFFERINGS OPERATING COSTS PRIVATE BANKS PRIVATE CAPITAL PRIVATE COMMERCIAL BANKS PRIVATIZATION PRODUCTIVITY PROFITABILITY PUBLIC DEBT REAL SECTOR REGULATORY FORBEARANCE REORGANIZATION SALES OF ASSETS SAVINGS SHAREHOLDERS SMALL BANKS SMALL FIRMS STATE BANKS SUBSIDIARIES SUPPLIERS TRANSPARENCY WORKING CAPITAL CORPORATE FINANCE CORPORATE GOVERNANCE IMPACT ASSESSMENT FINANCIAL INSTITUTIONS BANKING SYSTEMS CREDITWORTHINESS RESTRUCTURING PRIVATIZATION DEBT RESOLUTION POLICY FRAMEWORK STRUCTURAL REFORMS FOREIGN DIRECT INVESTMENTS FINANCING OPTIONS MACROECONOMIC STABILITY In February 2001, Turkey was hit by its deepest economic and financial crisis since World War II, prompting a severe decline in business activity. The adverse effects of the crisis were felt throughout the economy-starting in the public sector, spreading to the financial sector, and, causing increasing distress in the real sector. To restore growth and return companies to profitability, Turkey urgently needs to implement a comprehensive corporate restructuring program. Moreover, simultaneous resolution efforts are needed in cases where corporate distress is creating distress for financial institutions. The report explores the significance and depth of the crisis, which includes an analysis of corporate perceptions of the crisis, and corporate distress. Several factors will limit the ability of Turkish financial institutions to resolve distress among corporate borrowers. Weak insolvency and foreclosure procedures may encourage a race to seize collateral, inhibiting orderly workouts of non-liquid but viable companies. Small, capital-weakened banks could be particularly nettlesome in corporate workout negotiations. Banks need to recognize that such workouts can reduce non-performing loans, and restore their clients' creditworthiness. In addition, the Banking Regulation and Supervision Agency needs to develop policies that encourage banks to participate in voluntary workouts. Drawing on various models worldwide, recommendations suggest: resolution strategies to help banks and firms resolve their "mutual hostage'' dilemma; policy changes for the Government to facilitate resolution and attract foreign direct investment; and, financing measures to help firms overcome the credit crunch. Recommendations are also split between short-term measures, and medium-term measures - these medium-term measures are crucial because corporate distress will likely continue well beyond the initial macroeconomic recovery, while many of these measures, such as facilitating foreign direct investment and improving the management and transparency of large corporate groups, will have long-lasting effects. 2013-08-07T19:54:53Z 2013-08-07T19:54:53Z 2003-03 http://documents.worldbank.org/curated/en/2003/03/2185245/turkey-corporate-sector-impact-assessment-report http://hdl.handle.net/10986/14870 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Washington, DC Economic & Sector Work :: Other Financial Sector Study Economic & Sector Work Europe and Central Asia Turkey |