The Changing Relationship between Urban Planning and Revenue Generation in Local Government Banking: The Case of Ilbank in Post 2011 Era

Thesis Type: Postgraduate

Institution Of The Thesis: Middle East Technical University, Graduate School of Social Sciences, Urban Policy Planning and Local Governments, Turkey

Approval Date: 2019

Thesis Language: English


Supervisor: Osman Balaban


As main providers of local services, local governments play crucial roles in development of cities. However, in many countries, local governments are in need of technical and financial support to sustain their activities. To this aim, local government banking system models were established in various parts of the world. These banking systems can take different forms and show variety according to the social, economic and political structure of the countries. Despite all the differences, the main aim of the establishment of all these institutions is to sustain the development of cities in a planned manner. In Turkey, the Bank of Provinces was established as the only institution in charge of providing finance and technical support to local governments. The Bank has also been the sole provider of urban planning as a technical service for many years. By these missions, the Bank has been regarded as an academy for urban planning scholars. Starting from the 1980s, neoliberal policies and structural changes in the planning system have forced the Bank to be transformed. In this process, the Bank has gained the status of a private company and started to perform revenue generation activities. Thanks to its new status, the Bank began to develop profit-oriented urban projects such as mixed-use and residential developments. This thesis aims to understand and evaluate how the Bank’ approach to urban planning and public interest have been changed over time. In this direction, the impacts of this change on urban space and spatial development will be also discussed.