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Monetary policy is called to the policy the government follows to control the monetary supply.Monetary policy in each country is carried out by the central bank of that country.Monetary policy in Turkey is carried out Turkish Republic Central Bank(TCMB).The government also follows whether or not the monetary policy is healthily run through their central banks.The general aim of this study is to introduce the decisions made and methods applied in the scope of monetary policy made the effect on banking sector.Since banking sector has a locomotive attribute in Turkey economy, the effects of monetary policies are also extremely important for running of economy and its future and are strictly followed. For running of economy effectively i.e. chaneling of savings to the investors, finacial agencies have vital importamce.In this frame, fianacial agenceies form an important link between finance system and real economy.Among financial sector, banking sector keeps the most imporatnt place in the process of continuing economic activities.