Turkey entered the recent global crisis with a relatively high level of private external debt and a large current account deficit. However, literature review shows that Turkey was one of the hardest hit countries by the financial crisis. The policy measures implemented by the Turkish Central Bank softened the impact of the crisis. In this paper, we examined the performance of banking sector based on secondary data provided by the Banks Association in Turkey. We analyzed aggregate balance sheet of Turkish banks and utilized ratio analysis method. The investigations showed that despite deteriorations on liquidity and foreign exchange positions are detected, banking is not severely damaged as is experienced in many other countries. Historical experiences of 1994 and 2001 financial crisis and regulations introduced since then, prevented Turkish banking from a financial collapse.