History of Banking Law

The History of Banking begins with the first prototype bank of merchants of the ancient world, which made grain loans to farmers and traders who carried goods between cities. This began around 2000 BC in Assyria and Babylonia.

The first legal source related with banking is Hammurabi Codes articles 100-107. These were about commission contracts and loan transactions. 2 metre stel taş üzerine çivi yazısı ile yazılmış 282 madde. 13. md boş. Birisini suçlayan ispatla yükümlüdür. İspatlayamazsa ölümle cezalandırılır. Louvre müzesinde.

Around 300 BC in Eygpt, compound interest was forbidden and banking activities were subject to state control. In 1401 Bank of Genova “Casa di San Giorgio” In 1609 “Amsterdamische Bank” in Holland

Banking business in Ottoman starts with the capture of İstanbul Banking business in Ottoman starts with the capture of İstanbul. This capture provided the meet of European economy and Ottoman Empire. This is because İstanbul had been in the middle of the artery of commerces which were connected Akdeniz and Karadeniz, and centre of this trade were banks and bankers.

The first and only document in Ottoman Empire was Murahaba Regulation which determined the interest amount and tried to prevent usury. This regulation had been abolished in 1957 with the coming into force of Turkish Commercial Code.

Second document in Ottoman Empire was Country Funds Regulation (Memleket Sandıkları Nizamnamesi). The importance of this document is being first regulation about national bank. This document is related with the funds which give agricultural loans.

With this background we can say there is not a real banking law in Ottoman Empire. Banks operated their activities without legal rules and these activities were based on only commercial credit.

Banks established in Ottoman Empire 1847  İstanbul Bankası “Banque de Constantinople” 1856  Bank-ı Osmani “Ottoman Bank” 1860  Türkiye Bankası 1865  Şirket-i Umumiye-i Osmaniye “Societe General de I’Empire Ottomane” 1863  Ziraat Bankası 1866  Emniyet Sandığı 1914  Adapazarı İslam Ticaret Bankası 1914  Milli Aydın Bankası 1919  Adapazarı Emniyet Bankası

The Republican Era 1. Code of Protection of Deposit In 1933, this code was enacted for protection of saving deposits and audit of banks. This code is the first banking legislation of Turkish Republic.

2. Banking Code dated 1936 (no.2999) This code accepted the principles of the previous code and regulated the subject in more detail and comprehensive way. One of the newness of this code is regulation of banking internal system. According to this code, general manager became an independent organ and a member of board of directors.

3. Banking Code dated 1958 (no. 7129) 3. First regulation of financial structure and power of banks, it accepted the principle of distrubition of risks (dağıtılması)

In republic era, the most important code is Code of Central Bank of Turkish Republic dated 1930 (no. 1715). This code is abolished by Code of Central Bank of Turkish Republic dated 1970 (no.1211) which is amended several times.

Banks in Republic Era 1924  Türkiye İş Bankası 1924  Akhisar Tütüncüler Bankası (Tütünbank=Yaşarbank) 1927  Türkiye Emlak Kredi Bankası (Emlakbank) 1927  Denizli İktisat Bankası 1927  Kocaeli Halk Bankası (Türk Ekonomi Bankası=TEB) 1927  Eskişehir Bankası 1928  Türkiye İmar Bankası 1929  Lüleburgaz Birlik Bankası 1930  T.C. Merkez Bankası