When all the major economies of the world were reeling under the pressure of financial crisis, the banking industry in Turkey continued its grow track in 2009 as well as 2010. Foreign participation also increased during the same period. Besides, Turkey has shown a substantial progress in the banking sector during the past few years. The share of loans in banking industry assets has been growing every year. With the declining interest rate, banks have been rearranging their assets from the financing of the government debt to provide loans to consumers and businesses.
According to our report “Turkey Banking Sector Forecast to 2012”, Turkish banks have significantly intensified their lending activity during the past few years. Credit provided to the corporate segment contributes the majority of bank loans. However, personal loans are also experiencing rapid expansion on account of changing consumption pattern (relying more on credit purchase) and continuous expansion of banking services into retail segment.
In the coming years, the pace of growth in credit volume will be dependent on the development in the international markets and therefore, on banks’ liquidity preferences. At the domestic front, retail consumers will continue to drive the credit disbursal and interest-based income of banks in coming years.
As per our research, Turkish banks have not only seen growth in lending activities, but have also witnessed reckonable growth in the deposits on the system due to rising consumer confidence. With rapid expansion in household and corporate sector deposits, the country is expected to witness a thriving influx of deposits during the forecast period. Time and saving deposits will account for majority of the growth.
Besides, we have analyzed the pattern of macroeconomic variables and their impact on the banking sector of the country. Our report has also identified emerging industry trends, which will decide the future of the banking sector in Turkey and the key players in the country’s banking system along with their detail business description and recent activities.
Our report “Turkey Banking Sector Forecast to 2012”, provides extensive research and rational analysis on the Turkish banking industry. Forecasts for key banking segments, such as loans, deposits etc have also been presented to provide a better understanding of the banking sector in the country.