While some peers have struggled following the global economic crisis, Turkey’s banks have grown rapidly in recent years. Moreover, they remain healthy, liquid and well capitalised. Profits declined in 2011, particularly at the larger banks, as interest margins fell due to competition for loans and increased funding costs. However, there is still...
After outperforming many of its peers in 2010, the İMKB Borsa Istanbul (İMKB), had a challenging year in 2011. While bourses in many emerging markets declined, Turkey was particularly hard hit, mostly due to its weakening currency and the country’s exposure to the eurozone. Capital markets in Turkey remain among the most liquid in the region but are...
THE COMPANY: In 2011 the central bank’s macro-prudential policy measures utilised tools that directly and adversely affected Turkish banks. However, the tightening should lessen in 2012 as we foresee growth concerns surfacing and supportive macro data. Accompanied by improving global risk appetite and...
The top five Turkish lenders in account for nearly 60% of the assets in the banking sector. The state has ownership stakes in three of Turkey’s top 10 banks; and the second-largest bank, Ziraat, is 100% state-owned. While domestic players account for eight of the 10 biggest lenders in the country, four of these are at least partially owned by...
THE COMPANY: Domestic demand for white goods correlates with GDP. In times of economic expansion, white goods demand growth outpaces GDP growth, whereas the decline in sales exceeds the decline in GDP at times of economic contraction. From 2003-10 the average multiplier of domestic white goods demand...
The downside to the growth in retail lending in Turkey in 2010 and 2011 was a rapid increase in the current account deficit as consumers took advantage of greater access to credit to purchase imported products that were previously out of reach financially. At the same time, the lira, buoyed by strong capital inflows, strengthened, making imports...
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