Banking system in Turkey: Complete Guide
The dawn of banking in Turkey came at the beginning of the XIX century. During its long history, the system has undergone many changes. However, thanks to the reforms in the region at the beginning of this century, the state is now famous for financial stability and resistance to external factors.
Turkey CBI program is directly related to this sphere. You need to have a turkish bank account to take advantage of it. Foreigners who fulfill the requirements will experience the advantages of turkish banking.
According to the specialist company Immigrant Invest Svetlana Gorchakova, if you want to open bank account in Turkey, you must:
- have a tax number;
- visit turkish banks directly;
- provide a passport;
- get a local cell phone number.
The procedure takes up to a week on average. After receiving the card, you can experience all the pros banking. Both local people and foreign citizens can get a bank account in Turkey.
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Turkish banking system
The first financial institution first appeared in 1847 in Istanbul. Until 1930, the functions that belonged to central banks were carried out by the Ottoman Bank. After that, the Central Bank that issued and protected the monetary fund, regulated the system, and dealt with credit issues. All financial institutions in the region are subject to a single law. Today, there are nearly fifty of them. The association of banks is the representative body for the financial sector, and the agency for banking regulation and supervision is responsible for protecting depositors and their rights.
All representatives of the financial sector can be defined as follows:
- Banks managed by the Deposit Guarantee Fund.
- Foreign companies founded in Turkey.
- Branches of foreign companies in Turkey.
- Commercial: private and public.
- Undeposited: private, public, and foreign.
Many branches have employees who speak Turkish and at least English so that foreign citizens can benefit from their services.
Banks in Turkey
Ziraat Bank, a large and well-known state-owned bank, provides a full range of services. It has the most significant number of branches and ATMs in the country. It was created to finance the agricultural sector. The central office is located in the capital city.
Another famous institution is Akbank. There are 800 offices throughout the country. The institution was originally created to finance cotton producers. It is one of the most valuable banks.
Türkiye İş Bankası is the first public institution in the region. Now it occupies a leading position. Its branches are open not only in the homeland but also abroad. There are more than a thousand branches throughout the country and 22 in other countries. The company offers a full range of financial services.
Features of the banking system
Despite its stability, the economic system of the republic still has prospects for growth. The economic zone invests a lot in the technological sphere and the environment. It is due to the population’s needs and the rapid development of digital technology.
The region is attractive for foreign investment; a fifth of the total is directed here. It is worth noting that the system is quite loyal. Opening a current account in local or foreign currency is possible. Permission for permanent residence is usually requested, but there are sometimes exceptions for substantial investments.
The principal capital and liquidity indicators remain stable. Assets of companies show annual growth, thereby consolidating confidence in the financial system as a whole. The high level of liquidity in the Turkish banking sector is an important indicator of the stability of the system as a whole. Last year, the mark of 154% was recorded in July, that is, the actual level exceeds the normative limit. At the same time, there is still a trend of growth and development of the entire economic sphere of the republic, which in turn attracts foreign investors.
Conclusion
Every year, the republic attracts more and more foreigners who can invest significant sums. The state is famous for a decent number of its financial institutions and is also home to many foreign affiliates. A stable economy resistant to many changes is a substantial advantage of the state. Although foreign citizens often choose large and reputable companies to open an account, all institutions provide this service.
The growth of foreign investment and foreign users makes constant improvements in the financial sector, and most hire employees who speak foreign languages to expand the client base. Those wishing to become a resident of the region must familiarize themselves with the terms of the scheme and the intricacies of the economic system. It can be challenging to do it independently, so special agencies offer services to help you obtain one more citizenship.
As a rule, all Turkish financial companies have offline branches and smartphone applications. The institution will ask to confirm the local residential address during account opening. Non-residents can do this by presenting an agreement with a landlord or showing receipts confirming payment of utility bills at the declared address. A plastic card can be made here within seven days. The card owner gets access to all transactions immediately after receipt.
Therefore, Turkey’s financial system is quite similar to others worldwide. However, it is essential to clarify the nuances, especially if you are not a local resident.