Turkey's banks at ease while industry stresses

Turkey?s economy is going through a tough period with the buildup of risks in the economic, political and geopolitical climate. Nevertheless, concerns about the future of the economy vary from sector to sector. As a matter of fact, it also varies depending on the size of the enterprise. For instance, big holding companies that are operating in various sectors have relatively minimized their risk by putting their eggs in different baskets. Even if they lose in industry, they win in finance or real estate?  

The banking sector is especially less affected by the ongoing tension and has been able to maintain its profitability at a certain level. 

The situation for the 50 banks that make up the backbone of finance is for instance not as sorrowful and gloomy as industry. On the contrary, the banking system rapidly recovered from the interest rate turbulence of 2014 and has been able to increase its net interest rate income from 52 billion Turkish Liras in 2013 to 57 billion liras in 2014, maintaining its period income at 24.7 billion liras.

From the bank profits data of the first half of this year, we understand that the banks are doing well. 

According to data from the Banking Regulation and Supervision Agency (BDDK), the first half profit of the banking sector increased 11 percent compared to the same period last year and reached 13.8 billion liras. This is regarded as a sign that this entire year will end with a net profit of over 26 billion liras.  

The banking system, with its 12,213 domestic branches and 87 branches operating abroad, is hiring more than 218,000 personnel, including the overseas ones. The system has around 45,000 ATMs and it is known that private and foreign banks in particular have a high rate of...

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