Total assets of finance sector hit YTL 565 billion
Posted by meb at May 19th, 2007
The Turkish finance sector had assets totaling YTL 564.7 billion as of the end of 2006, a 20.2 percent increase over 2005 figures, according to the Financial Market Report for December 2006, prepared by the Banking Regulation and Supervision Agency (BDDK). The same report indicated the banking sector’s total assets at YTL 499.7 billion.
The report made general assessments about the economic climate in Turkey before providing data on the finance sector. It pointed out that deterioration has begun in the budget balance as a consequence of overspending in the first two months of 2007. Similarly, the report also noted that the consumer price index (CPI) also increased in the first three months of 2007 compared to the same period of the previous year due to the effects of an undervalued lira. The annual cumulative CPI was 10.86 percent in March. The report, however, suggested a sharp decline in the rate pf inflation after the second half of the year, depending on the estimations of lower domestic demand.
The BDDK report included remarks on interest rates as well and asserted that precautions taken after the turbulence of May 2006 by the central bank have proven effective and that the rates had stabilized.
The ratio of total assets of the finance sector over the gross domestic product (GDP) rose to 98 over 2005. The same ratio was 86.7 percent for the banking sector alone. The assets of other institutions that are included within the scope of the finance sector — financial leasing, factoring and consumer financing companies — have scored as much as 3.4 percent of the GDP.
The report underlined that the finance sector still is far below the level of satisfaction, that is to say it is too underdeveloped. This is an indication that it still has a large potential to fulfill, the BDDK report suggested.
As of last December there were 50 banks in Turkey — 46 of which were conventional banks while the remaining four were participatory banks. Of the 46 banks, 33 were deposit banks while 13 were investment and development banks. Meanwhile, the number of workers and branches continued to increase in 2006. As of December, the total number of branches was 7,296 and the number of staff was 150,793.
source: Today’s Zaman
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