SUMMARY The aim of this thesis is to critisize cash management techniques in both firms and banks in Turkey, the USA and some European countries. Since cash management services&operations show the level of relations between banks and firms and have very important roles on the profitability of banks and firms, these operations and services are considered crucial implications in finance world. If we have a look at Turkish banking sector we understand that Turkish banking sector was dominant within the borders of Turkey until 1980's. As a result of openness policies of özal governments and technological developments throughout the world after 1980's, Turkish banking sector has shown great improvement. When we come to 1990's, Turkish banks have reached a very good service quality and have had enough competition power among the banks in the international area. Having had increase in competition in Turkish banking sector, Turkish banks have started openning new branches abroad. On the other hand, interest revenues were almost all the incomes at the income sheets of the Turkish banks before 1980's. However, other revenues (mostly taken from customers as a service fee) have started taking an important share in income sheets especially at the 1990's. This trend has affected cash management policies. Therefore cash management policies have eventually gained importance for many banks in Turkey. The aim of of cash management policies is to create cheap or free source (money). In order to realize this, using time effectively is the essential rule. The circulation of cash especially in banking, food, tourism etc. sectors, is very dynamic. Thus, all market actors (banks, firms etc.) have to take care of their cash management policies under competitive market conditions. Almost in all sectors, the profit margins have been in a trend of decrease during recent years. So all financial enterprises have to control their income/expenditure positions properly. In other words, they have to carry out a very well operating cash management system.

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