Financial Analysis of Turkish Banking
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
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