Foreign share in banking hits 38.8%
Posted by meb at June 3rd, 2007
The Turkish Central Bank released its May financial stability report on Thursday, focusing primarily on the general structure of the financial sector.
The report showed foreign interest in the financial sector as continuing to grow, with the foreign share of the Turkish banking sector reaching 38.8 percent, comprising direct foreign shares, which increased to 22.4 percent with the latest takeovers in April, and a 16.4 percent ownership in stocks traded on the stock exchange. The total asset volume of the financial sector was YTL 567 billion at the end of 2006, 20 percent higher than in 2005. Although the share of pension funds in the financial sector was still low, the rate of increase was significant, jumping by 142 percent in 2006 over the previous year. The report also presented banking sector statistics. The number of banks in Turkey declined to 50 with the merger of Koçbank and Yapı Kredi Bank. The assets of banks reached YTL 500 billion in 2006, a 12 percent increase over 2005. The largest share in banking sector assets belonged to loans of all types, increasing to 46 percent in 2006 from the 2005 level of 41 percent. The share of banks’ equities in their total resources decreased by 1 percent to 12 percent by the end of 2006. The largest share in resources was held by time deposits — 62 percent — a figure that remained constant from 2005. As of the end of 2006, the profit of the banking sector increased by 94 percent, to YTL 10.6 billion.
source: Today’s Zaman
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