The financialization of consumption in Turkey: the emergence of consumer credits (1988-2008)

Abstract

Turkey has experienced a consumer credit boom in the 21st entury, like many other developing and developed countries. This thesis examines how financial indebtedness became normal in society by researching banks' strategies to attract people in order to consume by credit. In this scope, the advertisements of banks from 1988 to 2008, their financial reports after 2001 and statistical data on consumer credits' share were analyzed. Changing socio-economic conditions in Turkey after the 1980s, gradually transformed the banking sector fiom banking based on government strategies towards the introduction of new modern financial services to individuals. These new financial services were supported with changing consumption patterns, like shopping from hypermarkets due to the neoliberal policies of the governments and globalization that empowered banks with international capital and technological innovations. New bank services were introduced as comforts of modern life, a new era and banks intermediary role in consumption increased, especially in the mid 1990s with the increasing usage of cards and consumer credits. It has been found that banks encouraged financial indebtedness through their marketing strategies, which attracted people to credit their consumptions, and after 2001, a new kind of consumers emerged, who revolved his or her debts by following the various campaigns of the banks and banks addressed these risky indebted groups in order to earn more interest revenues.