Financial Analysis of Turkish Banking

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  • Topic: Bank, Asset, 2009
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  • Published : January 4, 2013
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The Financial System
and
Banking Sector in Turkey

October 2009, Istanbul

Contents
1. Impacts of Recent Developments on the Turkish Economy and the Sector
1.1.
1.2.
1.3.

Economic Performance
Measures adopted in Turkey
Reflections of Global Developments on the Banking Sector

2. The Financial System
2.1. The Banking Sector
2.1.1. General Information
2.1.2. Balance-Sheet Items in July 2009
Box :
1. Restructuring of the Banking Sector in Turkey

Gdp Growth
(percentage change in real terms)

The Financial System
and
Banking Sector in Turkey*

12
10

1. Impacts of Recent Developments on the
Turkish Economy and the Sector

8
6
4

1.1. Economic Performance

2

The recent global developments led to a rapid
contraction in the world economy and financial
markets and deceleration in trade volume.

0
02

-2

03

04

05

06

07

08

2009*

-4

Starting from the last quarter of 2008 in
particular, the global issues have had
considerable reflections in Turkey, whose
foreign trade volume reached 50 percent of its
gross domestic product.

-6
-8
* Program by the Government.

Unemployment rate has increased: The
unemployment rate, which was 10.3 percent in
September 2008, increased to 16.1 percent in
February 2009. Partly due to the effect of the
tax reductions implemented in certain sectors,
the unemployment rate began to fall and
realized at 13 percent in June 2009.

Both domestic demand and external demand
decreased. Output and income declined.
External financing became more limited. The
unemployment rate increased. In the public
sector, the budget deficit expanded and the
public sector borrowing requirement increased.

Unemployment Rate (percentage)

On the other hand, interest and inflation rates
have fallen.

18

Selected Economic Variables (percentage)

16

Dec.
2008

June
2009

Dec.
2009****

Dec.
2010****

Dec.
2009****

Growth*

-1.1

-6.5

-6.0

3.5

4.0

Inflation**
Unemployment
rate
Budget
deficit***/gdp
Current
account/gdp

10.1

5.3

5.9

5.3

4.9

13.6

13.0

14.8

14.6

14.2

1.8

5.3

6.6

4.9

4.0

-5.6

-3.3

-1.8

-2.8

-3.3

14

12

10

8
08/9

* Annual gdp change in real terms.
** Annual change in Consumer Price Index, as of August 2009. *** Central Government Budget.
****Program by the Government.

08

09/1 09/2 09/3 09/4 09/5 09/6

09*

*Program by the Government.

The current account deficit has narrowed
down: The ratio of the current account deficit to
gdp decreased from 5.6 percent at the end of
2008 to 3.3 percent as of June 2009.

The economy has contracted rapidly: Gross
domestic product (gdp) in real terms fell by 6.2
percent in the last quarter of 2008 and by 10.6
percent in the first half of 2009 compared with
the same period of the previous year.

The budget deficit has increased: The ratio of
the budget deficit to gdp was around 5.3
percent in the first half of 2009. It is expected to
be 6.6 percent at the end of the year.

* The Banks Association of Turkey-www.tbb.org

1

Public Sector Borrowing Requirement/Gdp
(percentage)

Current Account Deficit/Gdp
(percentage)

14

8

11

6

8
5

4
2
-1 90-01

02

03

04

05

06

07

08

2

09*

-4

0

-7

02

03

04

05

06

07

08

09*

* Program by the Government.
* Program by the Government.

Inflation and interest rates have fallen:
Consumer inflation declined to 5.3 percent as of
August 2009. It is expected to be around 5
percent at the end of the year. The Central
Bank short-term interest rates decreased to
7.25 percent, down by 10.5 percentage points
compared with the last quarter of 2008. Market
interest rates also decreased in line with the
interest rate policy of the Central Bank.

1.2. Measures adopted in Turkey
A series of measures were adopted by the...
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