Internal auditing in the turkish banking sector

Abstract

The origins of modern commercial banking in Turkey are closely interwoven with the problems of public finance in the 1840s. The first paper note issue of 1840 produced instability in the foreign exchange markets. So, in 1847, a bank was established with a government contract to stabilise the foreign exchange rates. It was dissolved in 1852 after failing in this task. The Ottoman Bank was established in 1856. It was a British company with its board of directors in London. The bank was reconstituted under an imperial decree as the Imperial Ottoman Bank, with a considerably larger capital subscribed by British and French investors in 1862. The Ottoman Bank still exists as the largest foreign commercial bank with 77 branches in Turkey