The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

Turkey struggles in search for sustainability

There’s a new buzzword from Ankara to Istanbul in Turkey’s financial markets: sustainability. Not of the environmental kind, but borne of a desire to keep the positive developments of the country’s economy, and its banks, flowing.

Turkey has been the poster child of emerging markets banking for some time. A country that has been able to sustain solid growth throughout the financial crisis with inflation under control has tempted buyers for its banks and securities. Questions are now being asked about the sustainability of some of its financial ratios, especially about its ability to finance a high current-account deficit. More than that, political risk remains a concern, in spite of the recent election of Recep Tayyip Erdogan as president in August. The fragility of sentiment was stressed by one bank that went so far as to say that “risk appetite tanked” in the pre-election period. This remains an issue as more elections are due over the course of the next year. Middle East political instability, in particular in Turkey’s neighbour Iraq, blights some investors’ positive outlook for Turkey.

On the economic front, managing US tapering presents a strategic challenge to Turkey’s authorities, in particular their handling of lira interest rates.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree