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Economy and Banking Sector of Turkey

Financial System Development

Financial System
61.2, 68th out of 144 countries
Banks' Soundness
60.5, 88th out of 144 countries

According to World Economic Forum's Global Competitiveness Report 2019, financial market development in Turkey is scored 61.2 out of maximum 100.0 and ranked 68th out of 144 analysed economies.

Financial Market Development in Turkey.

Chart 1. Financial Market Development in Turkey. Source: WEF.


Soundness of banks is scored 4.6 bringing Turkey into the 88th place.

Soundness of Banks in Turkey.

Chart 2. Soundness of Banks in Turkey. Source: WEF.

Further Information

Banking Focus

Banks in Turkey are mainly focused on the following areas:

  • universal banking
  • corporate and investment banking
  • participation banking

Banking Supervision

Central Bank of the Republic of Turkey

Central Bank of the Republic of Turkey

Banking Sector Structure

Number of Banks
53
Recent Changes (2018)
new banks: 0, closed banks: 0

Currently there are 53 credit institutions operating in Turkey.

Recent structural changes (2013 - 2018) of the banking sector of Turkey are summarised in Table 1.

201320142015201620172018
Number of Opened Banks000010
Number of Closed Banks000110

Table 1. Recent structural changes in the banking sector of Turkey.

The list of the most recently opened banks in Turkey is provided in Table 2.

NameStart Date
BANK OF CHINA TURKEY A.Ş.January 2017
 

Table 2. The most recently opened banks in Turkey.

All the credit institutions operating in Turkey can be classified into several categories. Table 3 summarises the number of banks in each category.

CategoryNumber of Banks
Banks under management of SDIF2
Branches of Foreign Banks Established Outside of Turkey5
Central banks1
Foreign Commercial Banks Established in Turkey16
Foreign Investment Banks Established in Turkey4
Participation Banks3
Private Commercial Banks8
Private Investment Banks5
Public Commercial Banks3
Public Investment Banks4
Public Participation Banks2

Table 3. Number of banks by category in Turkey.

Deposit Guarantee Scheme

Maximum Protected Amount
100,000 TRL

Deposit guarantee scheme is a financial stability mechanism implemented in many countries to protect bank depositors against the loss of their deposits in the case when a bank is unable to meet its obligations to depositors by compensating certain deposits held by depositors of the bank. This compensation is paid out from the contributions which banks have made into a deposit guarantee fund.

From a depositor's point of view it is important to know:

  • if the depositor is eligible within the terms of the deposit guarantee scheme;
  • if the depositor's bank is a participant in the deposit guarantee scheme;
  • if the depositor's type of deposit is covered by the deposit guarantee scheme.

All these details about deposit guarantee scheme in Turkey are summarised in Table 4.

Maximum Protected Amount
100,000 TRL
Scheme Participants
all credit institutions operating in Turkey (including branches of foreign banks)
branches of Turkish banks abroad
Eligible Depositors
natural persons
  • residents of Turkey
  • citizens of Turkey
  • foreign residents
  • foreign citizens
Non-Eligible Depositors
legal entities
Covered Accounts
private current accounts
participation accounts
precious metals accounts
Covered Currencies
all currencies, namely
  • TRL (Turkish lira)
  • foreign currencies
Paid In Currency
TRL

Table 4. Deposit guarantee scheme in Turkey.

Further Information

Country Ceiling for Deposits

Moody's country ceilings for deposits specify the highest rating that can be assigned to local- or foreign- currency denominated deposit obligations of a bank or other deposit taking institution domiciled within that country.

Local Currency (Turkish lira)
Ba2 (non-investment grade speculative)
Foreign Currency
B3 (highly speculative)

Local currency (Turkish lira) deposit ceiling for Turkey is set to Ba2 (non-investment grade speculative), foreign currency deposit ceiling is B3 (highly speculative).