the sector. total equities of these five banks comprised 48 percent of the total equity of the sector. if we say that these banks also own almost half of the total branch network of the sector, we could understand this concentration. however, the total share of the five major banks representing the concentration in the turkish banking system is smaller than the share representing the concentration in most oecd countries. again according to 1995 figures, concentration in sweden ’ s banking system is 86 percent, in holland 81 percent, in finland 74 percent, in belgium 59 percent, in england 57 percent and in spain 49 percent. in turkey the figure is 52 percent, and is slowly but steadily declining. if we look at the concentration issue from another standpoint, using the data for november 1998 and taking into account the total assets of the sector, 65 percent of the turkish banking system belongs to the top 10 major banks. if we include the 20 foreign banks and branches having a share of 6 percent, and the 14 development and investment banks having a share of 5 percent, it can be seen that 76 percent of the banking system is consistent with 10 big banks, foreign and investment banks. the remaining 24 percent of the sector belongs to 30 banks. among these banks, there are banks that are leaders in the sector, functioning properly and effectively. however, a limited number of banks have practical problems which are well known to us. we know all their problems. we monitor them. the existing banking laws and other elements of the legal framework do not give us full authority to address them actively and efficiently. the problem of the state owned banks is occasioned by the state budget, and its solution involves different issues. now let me talk about risk management in the turkish banking sector. from the standpoint of risk management, we do have well - developed methods of risk management and for supervising the risks that we undertake. as i pointed out in my brief remarks on the financial standing of the banking sector, turkish banks have reached a level of financial and institutional development that should not be underestimated. but despite all the aforementioned positive aspects, there are also various threats to the wellbeing of the turkish banking sector which i believe are worth mentioning. turkish banks, like all the other banks in the world, are exposed to credit risk, liquidity risk, interest rate risk and foreign exchange risk. this is true even in the absence of an environment of global crisis and macroeconomic risks stemming from political uncertainties. these are other

yandraduth googoolye : the importance of financial services to the economy and the need for good governance speech by mr yandraduth googoolye, governor of the bank of mauritius, at the celebration of the 125th anniversary of the mauritius civil service mutual aid association ltd, port louis, 15 november 2018. * * * the honourable prime minister and minister of finance and economic development, mr pravind kumar jugnauth the honourable minister of civil service and administrative reforms, mr cyril eddy boissezon the first deputy governor of the bank of mauritius and chairman of the financial services commission, dr renganaden padayachy the members of the board of directors of the mauritius civil service mutual aid association ltd ladies and gentlemen good afternoon 125 years in the life of a financial institution is indeed an occasion to celebrate especially when the central bank is only 50 years old. as your regulator, we are proud to collaborate and walk alongside to ensure your sustainability. this achievement takes more sense of pride when we consider how the mauritius civil service mutual aid association ltd came into being. from november 1893 to date, the association has undergone changes. launched by a group of civil servants at a time when there was only one bank, the association has carved its way to coexist commendably in the financial sector after obtaining a deposit taking license on 17 june 2005 from the bank of mauritius to mobilise fixed deposits from the general public. over the years, the association has gradually grown to become the largest non - bank deposit taking institution in mauritius, accounting for over half of the sector ’ s total assets. the association has broadened its customer base, having extended its facilities outside of the civil service with a total assets base of around rs43 billion, about a tenth of our gdp. the deposits mobilized by the association have increased by five - fold, from rs5 billion in 2005 to rs27 billion as at end of september 2018, which resulted into solid increase in advances from the association. the importance of financial services in an economy is undeniable on account of the benefits they provide to the economy at large. financial services facilitate domestic and international transactions, mobilize and channel domestic savings and broaden the availability of credit for firms, including smes, and households. the association has broadened its range of products on offer to cater for the specific needs of its members and the public at large. its attractive interest rates promote healthy competition, whilst contributing to financial access and inclusion