Can Turkish banks avoid economic reality?

How much longer can Turkish banks increase profits while the economy shrinks? The luck and skill of the industry have meant that defaulting borrowers have not yet caused a credit-quality crisis. But in Turkey, financial meltdown is often just around the corner. Dominic O’Neill reports from Istanbul.

Turkey: Foreign investors stay cool

IN THE NARROW market streets of Besiktas, Istanbul, business is unseasonably slow. Fatih, a 48-year-old florist, is playing backgammon with a friend in front of his half-empty store. The lack of custom means he is finding it increasingly difficult to pay his debts. He is unable to help his wife, whose credit-card debt has snowballed since a foreign car company made her redundant last year. Her six-month pay-off ran out about a month ago.

Can Turkish banks avoid economic reality?

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Can Turkish banks avoid economic reality?

Thanks for your interest in Euromoney!To unlock this article:

Regulators should be upfront with taxpayers – and admit all deposits are guaranteed

The Danish Compromise tests Europe’s appetite for regulatory easing

What can US bankers really expect from Trump’s deregulation impetus?

Prem Natarajan on Capital One’s AI stairway to heaven

Thanks for your interest in Euromoney!
To unlock this article: