The Turkish financial sector proved resilient during the global financial turmoil in 2009 as well as the ensuing economic crisis thanks to the regulatory reforms and structural overhaul that the government implemented in the wake of the country’s own financial meltdown in the early 2000’s. In fact, the reforms in the sector boosted investor confidence so much that financial services has become the preferred sector for FDI, attracting over USD 48 billion during the past 14 years.
- Banking dominates the Turkish financial sector, accounting for around 60 percent of overall financial services, while insurance services and other financial activities also show significant growth potential.
- There are 53 banks in Turkey (34 deposit banks, 13 development and investment banks, 6 participation banks). Out of 53 banks, 21 hold significant foreign capital (30% of total assets are held by foreign investors). Expanding loan base and favorable liquidity conditions contribute to the healthy growth of Turkey’s financial services.
- The sector enjoys a leading position in the world with an ever-growing asset size and strong equity structure protecting it against shocks that may arise from loans or turbulent market conditions.
- The sector overall exhibited a robust 18 percent compound annual growth rate (CAGR) between the years 2008 and 2015, reaching a total asset size of TRY 3.6 trillion (USD 1.2 trillion). The banking sector in particular almost doubled its assets during this period, with TRY 2.4 trillion (USD 807 billion) on the books by the end of 2015.