2010 ilerleme raporu - Avrupa Birliği Bakanlığı

firms. Overall, market exit procedures remain relatively cumbersome. The crisis had a
negative impact on the number of newly established firms.
Legal system
Turkey has established most of the legal framework of a market economy, but must ensure
further implementation. A reasonably well functioning legal system, including in the area of
property rights, has been in place for several years. Registering a property requires six
procedures and takes six days in Turkey. However, enforcing commercial contracts remains a
lengthy process, which involves 35 procedures and takes 420 days on average. The
specialisation of commercial court judges is insufficient, leading to lengthy court proceedings.
The expert witness system still functions as a parallel judiciary system, without improving the
overall quality. Use of out-of-court dispute-settlement mechanisms remains low. Overall, the
legal environment, in particular court procedures, continues to pose practical challenges and
create obstacles to a better business environment.
Financial sector development
The banking sector has shown resilience to the global financial crisis, largely due to major
improvements made to the regulatory and supervisory framework in previous years. Risk
ratios in the financial sector remained robust. The sector also benefited from the central
bank’s liquidity measures and some easing of regulations governing loan classification and
provisioning requirements. In a crisis context, a temporary easing of conditions for
restructuring loans and a temporary elimination of general provisioning for new loans aimed
at preserving the banks’ high capital adequacy ratios while encouraging lending. These
measures helped the nominal capital adequacy ratio to increase to almost 20% by early 2010,
substantially higher than the EU legal requirement of 12%. Non-performing loans fell to
about 5% by mid-2010 from a peak of about 6% at the end of 2009 and stress tests by the
regulator show that the sector is sound. The banking sector, by far the largest part of the
financial sector, increased its share to 78% of the total financial sector. The relative size of the
insurance sector increased slightly to 3%, about the same size as mutual funds. Domestic
private banks had a 32.5% share of total assets, whereas the share of foreign banks increased
to 39.5%, taking into account foreigners’ investments in the stock exchange, which is
equivalent to 20% of banking sector assets. The Istanbul Stock Exchange increased
considerably during 2009, with total stock market capitalisation almost doubling, from 19%
of GDP in 2008 to 37% in 2009 and over 40% of GDP by mid-2010. Concentration in the
banking sector remained broadly stable, as the shares of the top five and top ten banks were
60% and 80%, respectively. However, due to the very strong ongoing credit growth fuelled by
increased consumer and business confidence and low interest rates, regulatory authorities
need to remain vigilant. Overall, in difficult crisis conditions, the financial sector has shown
resilience thanks to earlier reforms.
3.2. The capacity to cope with competitive pressure and market forces within the
Union
Existence of a functioning market economy
The strength of domestic demand is fuelling a fast recovery from recession, which confirms
the economy's improved shock resilience. But it is also fuelling rapid expansion in the current
account deficit, pointing to the return of persistent imbalances in the Turkish economy. As the
recovery gets under way, a golden opportunity for structural reforms is being opened up by
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