Banks in all countries act as the main holders of both cash and assets. At the same time, the economy of the Republic of Turkey entered a period of recession and began to focus, among other things, on external potential sources of capital, and not only on domestic industrial production and services. Therefore, it is not surprising that the efficiency of the country's banking system is comparable to that of banks in European countries. Banks in Turkey offer their clients advanced financial products and a full range of services.
Turkey's financial system problems
The main problem is Turkey's huge external debt. In February 2021, it reached 2.64 trillion lira (more than $ 448.4 billion). Of these, the debt to the private sector is 1.67 trillion lira (approximately $ 306 billion).
The situation is aggravated by the depreciation of the Turkish currency against the dollar. In the last month alone, the lira fell 3.55% to ₺ 5.43 / $ 1. Turkey's central bank has said it will adjust its monetary policy if long-term price stability is negatively impacted by currency fluctuations.
The aggravation of relations between Turkey and the United States does not add optimism. So, in August 2021, the American president authorized an increase in the size of state duties on Turkish steel and aluminum - up to 50 and 20%, respectively. And the very next day after the adoption of this decision, the quotation of the lira / dollar currency pair dropped to a historical minimum of ₺5.9 / $ 1.
Then the President of the Republic of Turkey Recep Erdogan urged the local population not to worry about fluctuations in the national currency. In addition, he approved an increase in state duties by 60% on tobacco products imported from the United States, by 120% on cars and by 140% on alcohol.
Against the backdrop of the tariff war, no one should be surprised by the noticeable inflation of the Turkish lira. So, in October 2021, the value of this indicator in Turkey exceeded 25.5%, which is the maximum since 2003. And in the next 2 months, prices were consistently decreasing:
- in November - by 1.4%;
- in December - by 0.4%;
In annual terms, the CPI index, which reflects the rise in consumer prices, slowed down in December 2021 to 20.30%. Nevertheless, this figure is rather big.
Characteristics of the Turkish banking system
The banking system of Turkey is a collection of 47 financial institutions, which include:
- 3 state banks;
- 4 state investment financial institutions;
- 5 private investment;
- 16 foreign credit institutions;
- 4 foreign investment banks;
- 2 financial institutions managed by the State Deposit Insurance Fund;
- 4 participation banks. Such structures are understood as special financial houses.
The rating of Turkish banks will be discussed below.
Central Bank of Turkey
The Central Bank of Turkey was founded on October 3, 1931 and officially opened on January 1, 1932. He has the exclusive right to issue banknotes in the state.
Inflation in 2021 forced the country's Central Bank to raise the key rate to 24% from 17.75% per annum. This increase was in dissonance with the forecasts of analysts Bloomberg, according to which the optimal value of this parameter does not exceed 21%.
In addition, the Central Bank of Turkey has taken emergency measures to protect the country's financial market amid the conflict with the United States and the collapse of the lira. Let's name only the main ones:
- The Central Bank of Turkey allocated $ 10.45 billion from its reserves to provide liquidity to credit institutions, of which:
- $ 1.45 billion in Turkish lira (approximately ₺10 billion);
- $ 6 billion in American currency itself;
- $ 3 billion from gold reserves.
- The banks operating in the country were given the opportunity to take out foreign currency loans for one month.
- The limit of a bank guarantee in foreign currency for transactions carried out with the Turkish lira was increased almost 3 times - from € 7.2 billion to € 21 billion.
- For private banks, it is permissible, under certain conditions, to exceed the limit of foreign exchange reserves at the level of $ 50 billion.
- The reserve ratio for financial institutions was lowered, which made it possible to free up cash resources.
Top 5 banks in Turkey in 2018-2019
The list of Turkish banks holding leading positions in the country's financial market is shown in the table.
Attention: The internal data of table “1582” is corrupted!
Representative offices and branches of other banking organizations
Many foreign banks open their representative offices and branches in Turkey. Here are just a few examples.
- Dutch bank ING Bank. This international financial institution takes an active position in the market of the Republic of Turkey.
- Bank of China. With the entry of this credit organization into the Turkish market, many Far Eastern financial structures began to show interest in the possibility of conducting profitable operations in this country. Thus, a large bank Bank of Tokyo Mitsubishi UFJ Ltd opened its subsidiary there.
- Spanish financial institution BBVA - Banco Bilbao Vizcaya Argentaria.
Russian banks in Turkey are not active. However, this also applies to financial institutions registered in Ukraine, despite the fact that no sanctions were imposed on this country.
Tourists in the Republic of Turkey can withdraw cash through an ATM. True, in general, a commission of 3-5% of the amount to be cashed will be charged.
However, this rule does not yet apply to Sberbank cardholders. Why so far, it will become clear a little later. Now let's say that Sberbank in Turkey has opened its subsidiary, DenizBank.
Throughout the country, the branch network of this financial institution has approximately 750 branches. When using its ATMs, no commission is charged from the Sberbank card account. But if the funds of another Russian bank are cashed, then a commission fee of 1% of the withdrawn amount is payable.
Due to the negative impact of European sanctions, Sberbank's management was forced to consider selling DenizBank in Turkey. The buyer was found quickly - the largest bank in Dubai Emirates NBD ENBD.DU. The head of Sberbank, Mr. Gref, said that if the sanctions regime had not been in effect, the bank would never have left this segment of the financial business. Under the current conditions, it is simply impossible to receive dividends and attract funds from the market.
Many Russians are interested in whether there is an Alfa Bank in Turkey. Unfortunately, neither representative office nor branches of this financial institution were opened on the territory of the country. However, the withdrawal of cash by its customers from ATMs in Turkey is accompanied by the collection of a minimum commission - only 1%.
Main directions of lending
The Turkish Banks Association released the following data: in January 2021, the total loan portfolio of the country's financial institutions amounted to ₺ 2.5 trillion (almost $ 460 billion).
Meanwhile, the Government encourages banking structures to continue to issue more money, as this will help bring the state's economy out of the recession. Consider the features of various directions of lending to foreigners in Turkey.
Mortgage credit lending
Banks of the Republic of Turkey have been issuing long-term housing loans to foreigners for a long time. Initially, only DenizBank worked in this segment of the financial market. However, after some time, other banks began to conclude mortgage agreements, in particular, Kuveyt Bank Türk (headquartered in Istanbul), Akbank, Turkiye Finans.
Until the end of 2021, he provided long-term housing loans to citizens of other countries and HSBC Bank.But already in 2021, he curtailed his activities in the Republic of Turkey.
Most often, mortgage loans are issued to foreigners, including Russians, on the following terms:
- borrower age - not older than 65 years;
- the maximum repayment period is 20 years;
- loan volume - up to 75% of the appraised value of the acquired object;
- lending currency - Turkish lira, British pound sterling, euro, US dollars, Russian ruble;
- repayment is made in monthly installments. Early repayment provides for the accrual of a penalty in the amount of 1-2% of the balance of the debt.
Most of the developers of the Mediterranean coast, cooperating with the Russians, offer them 0% installments until the housing is commissioned.
Features of lending to legal entities
Citizens of other countries, as a rule, start their business by opening small businesses in Turkey. In this country, the category of small and medium-sized businesses includes legal entities with annual revenues not exceeding ₺25 million and employing no more than 250 workers. For such firms, there are certain benefits and a large number of state programs to support business projects.
In January 2021, the Turkish Banking Association decided to provide additional loans to small and medium-sized enterprises in the amount of ₺ 20 billion at reduced interest rates.
The head of the association, Mr. Hussein Aldyn, called this step a proof of the commitment of financial institutions to support the country's economy and industry.
Lending to individuals
Many foreigners make purchases in Turkey using borrowed funds. Often, if, for example, you are planning to purchase jewelry in a shopping center, a credit card from a local bank is used.
But you should be aware of the existing restrictions. The main one is the impossibility of issuing a new loan until the full repayment of the previously received one.
In addition, each bank sets limits on the maximum amount of credit card loans. The final value of this parameter depends on the income level of the borrower and on the object of purchase. If the client of the bank has untimely repaid the debt 3 times during the year, he will not be able to issue a new loan.
There are also restrictions on the maximum timeframe for refunds. When buying, they make up:
- jewelry and electronics - up to 6 months;
- furniture and household appliances - up to 12 months;
- cars - up to 48 months.
Opening a Turkish bank account
Starting an investment and entrepreneurial activity requires opening an account with one of the banks of the Republic of Turkey. The implementation of this procedure for legal entities and individuals, as a rule, does not cause difficulties. Let's consider its main points.
For legal entities
To open an account with a bank in Turkey, a legal entity must submit a basic set of documents:
- Confirming the fact of having the status of a legal entity. The documents must be apostilled and translated into Turkish, and the translation must be notarized.
- Reflecting the structure of management and ownership of the firm:
- memorandum of association;
- charter;
- an order on the appointment of specific persons to the position of director and chief accountant of the organization.
- Proof of the identity of the director, chief accountant, employees subordinate to them, entitled to dispose of the funds in the bank account.
- Confirming the fact that the bankruptcy procedure in relation to the company was not initiated. If we are talking about a Russian enterprise, you can refer to the official online file of arbitration cases (the address of its official website is kad.arbitr.ru).
Terms of opening a current account in a Turkish bank - from 2 weeks to a month. Upon completion of this procedure, it is necessary to notify the FTS of the Russian Federation of the fact of its carrying out and provide the documents requested by this service. Otherwise, the owner of the enterprise will be fined up to 1 million rubles.
For individuals
Anyone can open an account in a Turkish bank. If the current account is primarily intended for receiving and making money transfers, you can additionally request the issue of a debit card for withdrawing cash, as well as for paying for services and goods.
You need to submit the following documents to the bank:
- international passport;
- TIN issued by the local tax authority;
- document confirming the place of residence. It can be a Russian civil passport, utility bills, residence permit in Turkey.
The account will be opened immediately after the bank employee checks the submitted documents. If you order a bank card, you will have to wait a few days.
But opening an account with a financial institution is not always carried out only for conducting monetary transactions. We are talking about the possibility of obtaining passive income from placing free funds in reliable banking structures.
Deposits in Turkish banks have their own accounts, which individuals also need to open. For this, the following basic package of papers is submitted:
- statement;
- passport;
- copy of a foreign passport (notarized);
- a receipt for payment of utilities issued in the name of the depositor. The data contained in it serves as confirmation that the real place of residence is indicated in the application;
- References:
- on the amount of income for the last few years (with the seal of the Federal Tax Service);
- about the composition of the family;
- no criminal record.
After examining the table, you will find out what interest on deposits was accrued by the leading banks in Turkey at the beginning of 2021.
| Name of the bank | Term of placing a deposit | Currency | Bid, % |
|---|---|---|---|
| Garanti bank | 6 months | $ | 3 |
| 1 year | $ | 3 | |
| 6 months | € | 1.1 | |
| 1 year | € | 1.1 | |
| 3 months | ₺ | 16.26 | |
| 6 months | ₺ | 16.5 | |
| Ziraat Bank, "Urgent" deposit in the Moscow branch | 1 month | ₽ | 5.75 |
| 3 months | ₽ | 6.75 | |
| 6 months | ₽ | 7.5 | |
| 1 year | ₽ | 8.5 |
Organization of money transfer
International money transfers are made in several ways. But at the same time, it should be understood that the applied option will study the corresponding structures, and the transfer of a large amount will raise various questions.
When transferring via Western Union payment system, the fee for transferring money to Russia from Turkey is:
- transferring an amount from $ 3 to $ 200 will cost $ 3;
- the cost of a transfer transaction over $ 200 is 1%.
Fee for transferring money to Turkey from Russia:
- for a transfer of more than 100 thousand rubles. 1,000 rubles are charged;
- transfer of an amount from 10 thousand to 100 thousand will cost 1% of its size;
- the cost of transfer is 100-10,000 rubles. is 100 rubles.
Bank transfer is convenient if the receiving party has an account with the bank, or, for example, when using a Swift payment. Information about how much Sberbank charges for this operation are posted in the table:
| Transfer amount, $ | Commission, $ |
|---|---|
| 1000,01–1200,00 | 60 |
| 800,01–1000,00 | 50 |
| 600,01–800,00 | 40 |
| 400,01–600,00 | 32 |
| 250,01–400,00 | 24 |
| 100,01–250,00 | 20 |
| 1,00–100,00 | 12 |
You can make a transfer from absolutely any available electronic platform. The size of the commission for crediting funds to the card from the ruble purse of the WebMoney system is 0.8%, but not more than 1500 WMR.
And the commission fee for a transfer from QIWI to a Sberbank card is 2%, plus 50 rubles are charged for a single transfer.
Which method should be used depends mainly on the required speed of money transfer. If funds are urgently needed, the best options are to use Western Union or electronic payment systems.
Starting a business in the Republic of Turkey
The transcontinental location of the country between Asia and Europe attracted significant masses of investors. But there are other factors that make it possible to distinguish business in Turkey into a separate category.
In particular, the program of state support for medium and small enterprises is implemented by introducing the following forms of incentives:
- when importing investment goods, customs duties and other fees are not levied;
- VAT is refunded in whole or in part;
- preferential taxation is applied to some types of entrepreneurial activity;
- lending on concessional terms from the Investment Fund.
Tough conditions are not imposed on the opening of a business in Turkey by a foreigner. However, the country's immigration department must be convinced of the usefulness of the new firm for the economy of the Republic.
To do this, the entrepreneur needs to develop a business plan, according to which two or more indigenous people of the Republic of Turkey will be provided with jobs. In most cases, the cost of starting a company is $ 2,000-2,200.
Conclusion
The choice of a bank in Turkey should be approached with all seriousness. After all, a foreigner can count on advantages in cooperation with a financial institution. For example, when a bank has a partner in the person of a credit institution registered in the country of permanent residence of a potential client, it will be easier to draw up the same long-term housing loan or consumer loan in this bank.
When opening an account, a foreigner is usually asked to get a card. For those who are going to spend a long time in Turkey, it will certainly come in handy. After all, the country has a well-developed network of ATMs, so the cardholder will have little risk of being left without cash.
