Turkish economy and banking sector Dr Ekrem Keskin

Turkish economy and banking sector Dr. Ekrem Keskin 36 th Meeting of the EU-Turkey JCC Brussels, 18 and 19 July 2017

Main features of the economy • Functioning market economy • Free capital flows • Free floating exchange rate regime • Member of G-20; ranked the 13 th in terms of Gdp on PPP • Population; 78 million, ranked the 2 nd after Germany in the EU • Services with 60 percent and industry with 30 percent • Ba 1 with “stable outlook” by Moodys’; BB with “stable outlook by S&P; BBB with “negative outlook” by FITCH ESC, July 2017 1

Ranked 13 th largest in the world Source: Undersecretary of Trasury ESC, July 2017 2

6 th largest in Europe Source: Undersecretary of Trasury ESC, July 2017 3

Youngest population breakdown Source: Undersecretary of Trasury ESC, July 2017 4

Stable and high growth performance ESC, July 2017 5

Faster growth compared to EU ESC, July 2017 6

Income tripled ESC, July 2017 7

Strong fiscal stability ESC, July 2017 8

Still fight for price stability ESC, July 2017 9

High c/a deficit and capital inflows ESC, July 2017 10

Almost half of foreign trade with EU ESC, July 2017 11

Unemployment rate hovers at 11 percent ESC, July 2017 12

Strong financial stability Resilience during global crisis; no single support from the Government Healthy, well regulated and efficently supervised Fully compliant with Basel III Supervisory and regulatory requirements are equivalent to the European Union's regime, announced by EU Commission Well-diversified lending portfolio High-capital adequacy level Better risk management Innovative in products and services ESC, July 2017 13

Rapid growth in banking sector ESC, July 2017 14

Increased finance to private sector ESC, July 2017 15

Well diversified loan portfolio and high loan quality ESC, July 2017 16

High capital to support growth ESC, July 2017 17

Non-residents’ interest ESC, July 2017 18

Big gap; narrowing? ESC, July 2017 19

ESC, July 2017 20

Growth and macro balance Source: Government’s programme ESC, July 2017 21

Reliable partner Turkey is a reliable and strong partner in international economic cooperation. Turkey carries very positive features in many aspects with her economic structure, economic policies, markets, approach to global norms and standards, infrastructure, rules and institutions regulating the social and economic life in general. ESC, July 2017 22

Thank you. Ekrem Keskin ekrem. keskin@tbb. org. tr www. tbb. org. tr ESC, July 2017 23