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.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

Foreign banks head for Turkey’s exit door

Are currency depreciation and an uncertain political environment pushing international banks away from Turkish assets? The expected sale of HSBC’s local unit could hold the answer.

When HSBC decided to review its loss-making Turkish operation earlier this year, it sparked a flurry of interest among M&A bankers and across the sector. 

Bulent Sengonul, head of research at local investment bank Is Yatirim

Several foreign banks with strong owners have not achieved the growth they were looking for in Turkey

BuIent Sengonul,
Is Yatirim

If, as expected, the UK group decides to sell all or part of the business, it could provide a valuable indicator of whether international lenders’ appetite for Turkey has survived rising political and economic uncertainty.

Until recently, it seemed as though nothing could dim the allure of the Turkish banking sector for foreign investors. Even after the global financial crisis, as banks’ enthusiasm for overseas expansion waned, Turkey’s combination of strong economic growth, favourable demographics and low banking penetration continued to attract a steady stream of new entrants. 

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 acces 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

£68.33 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