Financial

Turkish Ministry of Finance and Treasury

The Ministry of Finance and Treasury is a government ministry office of the Republic of Turkey, responsible for finance and tax affairs in Turkey.

The following departments are subordinate to the Ministry of Finance: Tax Inspection Board, Strategy Development Unit, Directorate General of Budget and Fiscal Control, Directorate General of Revenue Policies, Department of the European Union and Foreign Affairs, Ministry of Finance Centre for Higher Training, Financial Crimes Investigation Board, Chief Legal Advisory and Directorate General of Proceedings, Directorate General of Public Accounts, Directorate General of National Property, Directorate General of Personnel, Department of Administrative and Financial Affairs.

Turkish Central Bank

The primary objective of Turkish Central Bank is to achieve and maintain price stability. Price stability refers to an inflation rate low enough to be ignored in economic decisions. The Bank determines at its own discretion the monetary policy that it will implement and the instruments that it will use to achieve this objective. This means that the Bank has instrument independence. The Central Bank is also responsible for determination of financial stability, exchange rate regime, printing and issuing banknotes and payment systems.

Turkish banking system

Banking dominates the Turkish financial sector, accounting for over 70 percent of overall financial services, while insurance services and other financial activities also show significant growth potential. There are 51 banks in Turkey (33 deposit banks, 13 development and investment banks, 5 participation banks). Out of 51 banks, 21 hold significant foreign capital (30% of total assets are held by foreign investors). 

There are three types of banks in Turkey: deposit banks, development/investment banks, and participation banks, which carry their activities based on interest-free banking in compliance with globally accepted Islamic finance principles. Banks may issue cash loans, non-cash loans, and interest-free (participation) loans in both local and foreign currency to legal entities and real persons; however, they are not allowed to make foreign currency loans to real persons for non-commercial purposes. In addition, residents in Turkey are obliged to use banks established in Turkey as intermediary institutions to receive loans from abroad.

Turkish leasing and factoring

Leasing could be in the form of a domestic lease, a cross-border lease, a sale and lease back, or a sales-aid lease. Real estate, automobiles, computers, office equipment, medical equipment, construction machinery, manufacturing machinery, and other fixed assets may be obtained through leasing. Factoring companies, meanwhile, actually purchase receivables documented by invoices arising from goods and services sold and therefore assume the risk of payment.

International banks

In addition to Turkey-based financial institutions, several international developments banks, such as the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), and the International Finance Corporation (IFC) also provide funding for many investment projects in Turkey.