Power Of The Turkish Banking Sector
The asset size of the banking sector, which could reach only half of the economy 20 years ago, has exceeded the size of Turkey's gross domestic product.
As of the end of 2017, the total assets in the sector where 51 banks operate are over 860 billion dollars. In 2017, the size of loans generated by the banking system exceeded 2 trillion TL. As for the loans in which the double-digit growth continues almost every year, the growth in the last year was 21%.
Despite the increase in loans, the capital adequacy of the banking system is 16.5% as of the first half of 2018. Non-performing loans are below 3%.
The return on equity of the banking sector is 16%. The leverage level is well below the many banks in developed and developing countries. Active/equity ratio is 8.7 folds. The fact that Turkey had periods in which an annual growth over 7% was achieved is a solid indicator of this potential.
These rates show a positive situation when compared to many countries in the world, including Europe. The strong banking and financial sector reinforces the trust in Turkey's economy.