During the last two decades, the banking sector, which plays a prominent role in the Turkish financial system, has made significant progress in implementing structural changes towards a more financially liberalized Turkish economy. Combined with the effects of restructuring Turkish economy and the efforts for the integration to the modern world of finance, the Turkish banks achieved important changes in their institutional structures on the one hand, and in the quality of services and products on the other. In this very outward-oriented and closely supervised banking environment, the need for highly qualified managers and specialized personnel is obvious. With this in mind, Turkish Banks became more effective in their utilization of human resources. The number of university graduates and postgraduates in the banking sector has steadily increased over the last two decades, as has the level of professional training. The increase in the number of banks and qualified personnel, in turn, enhanced competition and contributed to broad utilization of new financial instruments and techniques. Furthermore, the banks were motivated to attain a dynamic structure through automation. During the last decade, Turkish 3  BIS Review 79/2000  banks became more automated and efficient, along with their foreign counterparts. For example, the number of ATMs in Turkey has increased from zero to over 8,000 in the last decade. Intense competition and a desire to integrate with global financial markets has driven banks to improve the quality and the variety of services through information technology and international payment systems.
  Firstly, there is the federal approach, where you allow for a full delegation of powers to the EU level, including regulation, supervision and crisis management (Figure 2).   Secondly, you can abandon the idea of the internal market and return to a system with full national control of domestic financial systems (Figure 3). Figure 2  Figure 3  The de Laroisière group opted for a third way – the middle way – to reform the EU financial system. In terms of the financial trilemma, this means keeping financial integration and, at the same time, trying to find a reasonable compromise between financial stability and national sovereignty (Figure 4). Somewhat stronger cooperation, but still resting on national sovereignty. Figure 4 Financial stability  Financial integration  National sovereignty  Given the present European crisis, you may well ask whether this is a possible compromise or whether it will be just another damp squib. Only time will tell. But within this concept, there is room to move towards stronger European cooperation. The EU’s new supervisory structure The de Laroisière proposal rested on two major institutional pillars. The first related to the previous “level 3” committees, which were to be strengthened, transformed into authorities,  2  BIS central bankers’ speeches  and given as much power as possible without having to change the European Treaty.