Banks operate in accordance with international rules and practices and offer a wide variety of services at their numerous branches. Turkey's determination to develop its relations with the European Union means that the country's banking authorities have placed increasing emphasis on ensuring that their regulations are in harmony with those in the Union. Turkey has already accepted EU practices on capital adequacy. Moreover, insurance activities can be done only as agent but not as principal. In addition, investment and development banks are not permitted to accept deposits.
Turkey has an active and open system made up of state-owned banks and private banks.
69 banks are operating in Turkey excluding the Central Bank. There are 17 foreign bank participations operating in Turkey. The growing presence of foreign banks is a reflection of the continuous internationalisation of Turkey's financial system. Despite their small market share, foreign banks have an important place in the Turkish banking system because of the new concepts and practices they have introduced. Herzegovina and the Turkish Republic of Northern Cyprus.