Financial and banking services are one of the most important services and currently the basis for companies and governments' financial and commercial activities at the domestic and foreign levels. Certainly, any decision and any law that is created or changed in this regard at the domestic and international level and the country in question for commercial activities will affect the large-scale activities of financial and banking services. Therefore, having the ability to analyze and reason about the present and future conditions is very important. As well as lobbying to preserve or change or create new laws or regulations.

Wells Fargo Bank is headquartered in the United States. Due to the sensitivity of financial and banking services and the close competition between domestic banks and branches of foreign banks operating in the United States, the review of laws and political conditions will have many effects on the functioning of financial and banking services and the profitability of economic activities. For example, any decision by the US Federal Reserve on interest rates will directly impact banking activities and the rates of commercial and non-commercial loans.

Also, macroeconomic decisions in the form of economic aid, which is injected into society in the form of government financial aid and cash, will automatically create liquidity and positively or negatively affect banks, including Wells Fargo Bank. I will give an example of the conditions in the pandemic situation. This year, a large amount of liquidity entered the market based on legal decisions and government injections and financial aid to individuals and businesses. In this situation, when the government offers non-repayable loans or loans with interest rates close to zero percent, or by providing loans with low-interest rates and without the need for financial support, banks are practically able to provide the same services, they lose the inherent duties and activities of existing banks.

I chose Turkey for my research. Before discussing, I need to give a brief explanation of the conditions of Turkish laws and policies. Turkey appears as a republic, but in practice, it can be called a dictatorial country. In this country, all laws are created or changed based on the decisions of the president. This country is changing its culture from the Islamic religious model to the secular and European model. In this country, interest rates are not set by the national bank, but are ordered by the president. For political reasons, this country has structural and fundamental problems with European countries. One of the main problems is the harsh treatment of newspapers and freedom of expression. Due to its proximity to Syria, Iraq, and Iran, it is practically always exposed to high-risk groups and uncertain geographical borders. Due to non-compliance with international money laundering laws, it is practically possible to transfer cash anonymously.

Hence, this country has become the main place of activity of domestic and international criminal groups. Wells Fargo Bank has a branch office in Turkey. It is a strategic partner in the military and intelligence spheres with Turkey, but at the same time has no base within the Democratic Party due to its non-free approach to people and parties. On the other hand, during the presidency of Trump, the head of one of the main banks of this country in the United States was arrested for circumventing the sanctions on Iran. The United States also sanctioned the US Secretary of Economy. Both of these cases and the instability of this country's exchange rate called Lira and the unwillingness of financial and banking services companies including PayPal to provide services to this country is practically possible in the field of financial exchanges between this country and other countries. The US has taken extensive action in this country with banking activities. Turkey does not have proper rules for foreign investment. It has made it difficult to transfer capital for foreign investment. The exchange rate of domestic currency and foreign currency sometimes changes up to 100% per year. There is no political stability in the country and in some cases the law changes in less than a few months.

By accepting bribes, the president offers special concessions to some foreign companies, including banks, making it impossible for healthy competition in this country. There was a coup in this country in 2016. It considers the United States and Europe to be the masterminds of this coup. An American cleric was also arrested in 2015 as a spy for evading US ransoms. However, under pressure from President Trump, the priest was later released. There is a lot of illegal money in this country and there is no law to deal with this situation. Hence, this country's investment risks are high, and the possibility of changes in this country at a high level based on coups or insurgencies is also high. This country does not have good security conditions due to its border with Syria. Also, because to the coronavirus, the country is practically unable to provide adequate financial support to companies, banks, and economic institutions. The country's main income from the tourism industry has been reduced to almost zero.

Currently, the conditions for financial and banking services are not suitable due to diplomatic problems at the regional and international level and inflationary problems due to poor economic performance and anti-investment laws in Turkey. Turkey is not recognized as a friendly country by Egypt and other Arab countries because it supports religious groups in Egypt and its formal and informal stances against the Gulf states, including the United Arab Emirates and Saudi Arabia. On the other hand, Turkey does not have suitable political and diplomatic conditions due to its political stances against Israel's actions. After the downing of a Russian plane by the Turkish state on the border between Turkey and Syria, the economic and political relations between the two countries were almost completely severed for a while.

There is also a negative atmosphere in the public opinion of the Middle East and Europe against Azerbaijan due to the defense of the Turkish state from the war positions of Azerbaijan in the war between Azerbaijan and Armenia and the deployment of military and quasi-military forces and the sale of weapons to Azerbaijan. The reason for their support was because the people of Azerbaijan and Turkey are of the same religion, who have a predominantly Muslim population.

On the other hand, the people of Armenia are Christians. At a glance, we can see that we are dealing with a non-democratic system in Turkey, which has roots in religious, political, and security problems with all countries in the region.

Due to the large population of Kurds living in the east and southeast of the country, who also carry out armed activities against the central government, the country will not have the right internal conditions for large-scale economic investments and banking and financial activities. One of the Wells Fargo Bank's mistakes was opening a branch in this country, which, even though it was possible to invest in other countries, especially in the East in Asia or the countries of the Central and South American regions, was more profitable in this country. One of its foreign offices operated.


Due to the coronavirus conditions, many laws have been passed in the United States and Turkey to change the situation in favor of the people. Economic companies, which are not positive in Turkey and practically people and companies do not have right conditions for financial and economic activities. The closed policies of Turkey and the dictatorial regime in this country have almost limited the working space of financial and credit institutions. Non-compliance with financial laws in the field of money laundering is one of these cases. Because of the above, the current rules and political conditions of Turkey with its neighbors, European countries, and the United States, it seems that the activities of the Wells Fargo Bank in Turkey are not profitable, and there is no possibility to change the current situation.


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