The financial sector, which took place at the beginning of the 2000s in Turkey following the local economic crisis, thanks to regulatory reforms and structural changes are put into practice, which began in 2009 and has proved to be after the ongoing extent resistant during the global financial crisis. The reforms have increased the confidence of investors and the financial sector has become the most preferred area for international direct investments, attracting USD 52 billion in investments since 2005.
While banking services, which have a significant weight in the financial sector, hold a share of approximately 70% in all financial services, insurance services and other financial activities also have a significant growth potential. In Turkey; A total of 51 banks operate, including 32 deposit banks, 13 development and investment banks, and 6 participation banks. Of these 51 banks, 28 have foreign capital (27% of total assets in the sector belong to foreign investors).
The Turkish insurance industry is still a poorly penetrated market when compared to peer countries (it represents 1.5% of GDP). take a share of the insurance sector with the establishment of new insurance companies and Turkey are activating this potential market. Turkey, as more and more financial products and services to the needs of young and dynamic population, encouraged in part, exhibits a strong economic growth.
The country’s robust economy, which promised a bright future with Turkey has also been a driving force for the financial sector. The last 16 years, Turkey’s GDP grew by an annual average of 5.5% and is expected to continue this growth rate. Turkey’s large and diversified economy showing considerable value growth has become the 13th largest economy in the world as it appeared in 2018.
Turkey’s economic growth also enabled the development of a middle class with increasing purchasing power and increase revenue.
Turkey also has set intended to achieve specific economic targets in the near future. One of these goals is to transform Istanbul into an important financial center. Turkey’s large and young population, qualified labor force and rapidly evolving markets with geo-strategic position makes it an ideal candidate for Istanbul as an international financial center. Having progressed rapidly since the government launched the Istanbul Financial Center project, Istanbul now stands out as one of the developing financial centers of the world.
https://www.invest.gov.tr/tr/sectors/sayfalar/financial-services.aspx
