USD 57 billion
Total FDI inTotal FDI inflows to the Turkish financial services industry since 2002.flows into the Turkish financial services industry in 2002-2018.
TRY 22.6 trillion
Total asset size of Türkiye's financial services sector as of 2022.
8.4%
CAGR of Turkish financial services industry in 2002-2021.
57
Number of banks operating in Türkiye.
128%
Total asset size of Turkish banking sector as % of GDP in 2021.
19%
Capital adequacy ratio in Turkish banking sector as of November 2022.
The Turkish financial sector proved resilient during the global financial turmoil of 2009, as well as the ensuing economic crisis, thanks to regulatory reforms and structural overhaul implemented by the government in the aftermath of the country's own financial meltdown in the early 2000s. In fact, the reforms in the sector boosted investor confidence so much that the industry has become the most preferred sector for FDI, attracting USD 57 billion since 2002.
Banking dominates the Turkish financial sector, accounting for more than 70 percent of overall financial services, while insurance services and other financial activities also have significant growth potential. There are 57 banks in Türkiye (32 deposit banks, 16 development and investment banks, 6 participation banks, and 3 banks under the management of the Savings Deposit Insurance Fund). Out of the 57 banks, 25 are classified as foreign banks.
The Turkish insurance market is still underpenetrated compared to peer countries. It is poised to capitalize on its significant potential as new insurers set up shop and gain access to the relatively untapped Turkish market. Türkiye has seen strong economic growth, fueled in part by a young and dynamic population that is increasingly in need of financial products and services.
A key driver of the Turkish financial sector has been the county's robust economy with a bright future. During the 2003-2021 period, the Turkish economy grew at an average annual real GDP growth rate of 5.4 percent, and the growth momentum is expected to continue. Türkiye's sizeable and diverse economy has achieved remarkable growth, becoming the 11th largest economy in the world in 2021.
Türkiye's economic expansion has resulted in higher income and a burgeoning middle-class with increasing purchasing power.
Türkiye has also set specific economic targets for the near future. One of these targets is to make Istanbul a prominent financial center. Türkiye's large and young population, qualified labor force, and rapidly developing markets along with its geo-strategic location, all make Istanbul an ideal candidate for an international financial hub. Since the government launched the project for the Istanbul Financial Center, Istanbul has rapidly made progress and is now regarded as one of the emerging financial centers of the world.
