Foreign Investor Guide
Reference: Presidency of the Republic of Turkey Investment office www.invest.gov.tr
FINANCIAL SERVICES
52 billion USD
- FDI entry into the Turkish financial services industry between 2002-2018.
3,9 trillion TL
- Total asset volume in Turkey's financial services industry in 2018.
%18
- The annual compounded growth rate of the Turkish financial services industry between 2008 and 2018.
51
- Number of banks serving in Turkey.
%104
- The ratio of total assets in the Turkish banking sector to GDP in 2018.
%17,3
- Capital adequacy ratio in the Turkish banking sector in 2018.
The financial sector has proven how resistant it is during the global financial crisis that started in 2009 and continued afterwards, thanks to the regulatory reforms and structural changes implemented after the local economic crisis in Turkey in the early 2000s. The reforms made have increased the confidence of investors and the financial sector has become the most preferred area of international direct investments, attracting USD 52 billion in investments since 2005.
While banking services, which have a significant weight in the finance sector, have a share of approximately 70% in all financial services, insurance services and other financial activities also have a significant growth potential. A total of 51 banks operate in Turkey, including 32 deposit banks, 13 development and investment banks, and 6 participation banks. 28 of these 51 banks have foreign capital (27% of the total assets in the sector belong to foreign investors).
The Turkish insurance industry is still a poorly penetrated market when compared to peer countries (representing 1.5% of GDP). With the establishment of new insurance companies and taking a share from the Turkish market, the insurance industry activates this potential. Turkey exhibits strong economic growth, partly encouraged by its young and dynamic population, who increasingly rely on financial products and services.
The country's robust economy has been a driving force for the Turkish financial sector with its promising bright future. In the last 16 years, Turkey's GDP has grown by an average of 5.5% annually and this growth rate is expected to continue. Turkey's large and diversified economy has grown significantly, making it the 13th largest economy in the world in 2018.
Turkey's economic growth has also led to the development of a middle class with increased income and increased purchasing power.
Turkey has also set specific economic targets aimed at achieving in the near future. One of these goals is to transform Istanbul into an important financial center. Turkey's large and young population, skilled workforce and rapidly developing markets with its geo-strategic location make Istanbul the ideal candidate as an international financial center. Having progressed rapidly since the government launched the Istanbul Finance Center project, Istanbul now stands out as one of the developing financial centers of the world.
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https://www.invest.gov.tr/tr/sectors/sayfalar/financial-services.aspx