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.
Chart 1. Financial Market Development in Turkey. Source: WEF.
Soundness of banks is scored 4.6 bringing Turkey into the 88th place.
Chart 2. Soundness of Banks in Turkey. Source: WEF.
Banks in Turkey are mainly focused on the following areas:
Central Bank of the Republic of Turkey
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.
|Number of Opened Banks||0||0||0||0||1||0|
|Number of Closed Banks||0||0||0||1||1||0|
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.
|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.
|Category||Number of Banks|
|Banks under management of SDIF||2|
|Branches of Foreign Banks Established Outside of Turkey||5|
|Foreign Commercial Banks Established in Turkey||16|
|Foreign Investment Banks Established in Turkey||4|
|Private Commercial Banks||8|
|Private Investment Banks||5|
|Public Commercial Banks||3|
|Public Investment Banks||4|
|Public Participation Banks||2|
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:
All these details about deposit guarantee scheme in Turkey are summarised in Table 4.
Table 4. Deposit guarantee scheme in Turkey.
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) deposit ceiling for Turkey is set to Ba2 (non-investment grade speculative), foreign currency deposit ceiling is B3 (highly speculative).