Press Release

Turkey Loan Market to be Dominated by Corporate Loan in the Forecasted Period

Increased demand for commercial and corporate loans and rising demand for loans through digital banking will fuel the loan market growth across the country through 2028.


According to TechSci Research report, “Turkey Loan Market – By Region Competition Forecast and Opportunities, 2018-2028F”, The Turkey loan market is anticipated to project robust growth in the forecast period due to increased digital banking, rising demand for corporate loans, increasing urbanization, and attractive marketing strategies.

The Turkish economy has grown and has progressively merged with the global economy. Turkey's strong economy, which has a promising future, has been a significant driver of the financial sector. With an average annual real GDP growth rate of almost 5.5% for the previous 16 years, Turkey's economy has been expanding, which is anticipated to continue. Being one of the largest economies in the world, Turkey's sizable and diverse economy has experienced extraordinary growth. Turkey's economic expansion has raised incomes and given rise to a strong middle class with rising living standards. While the policy rate is 14% and deposit rates are 20%, some banks' commercial loans have interest rates of 30–50% and others don't even provide loans.

 In order to make it easier for firms to receive finance, the Turkish Credit Guarantee Fund (CGF) launched a new loan programme named "the Economic Value Loan Program (EVL)". The CGF will serve as the loan program's security, while the Treasury will serve as the collateral guarantor.

Commercial banks make up the majority of Turkey's financial sector, accounting for 91% of all financial sector assets as of 2020 end. Asset management firms account for 5% of all financial sector assets, while leasing, factoring, insurance, and finance firms are limited and have little impact on the nation's financial intermediation.

With substantial capital and liquidity buffers, the banking industry in Turkey is a significant portion of the economy. In the last two years, the sector's share of GDP expanded quickly. Over 70% of all financial services in Turkey are provided by the banking sector, which also has significant growth potential in the insurance and other economic sectors. Strong domestic demand and an innovative private sector are the main drivers of the Turkish loan industry, which has encouraged investments.

The Canal Istanbul Project and other long-awaited mega PPP projects, like the Aydn-Denizli Motorway Project, the Ankara-Zmir and Mersin-Adana-Gaziantep Railway Projects, are just a few examples of the impressive political and economic agenda the Turkish government has pursued to increase its efforts to encourage investment.

 

Browse over xx market data Figures spread through xx Pages and an in-depth TOC on the "Turkey Loan Market"

 

The Turkey loan market is segmented based on type, provider type, interest rate, tenure period, region, and competitional landscape.

The Turkey Loan Market is segmented based on type into secured and unsecured loans. Secured loans demand collateral in the form of FDs, property, or other tangible or intangible assets as security. These loans often have lower interest rates than different types of loans. Secured loans require some collateral or security, while unsecured loans do not. These loans typically feature higher interest rates as well. With rising GDP and a strengthening economy, commercial and corporate loans are more in demand in Turkey.

Based on the provider type, the market is segmented into banks, non-banking financial companies, and others (fintech companies). In Turkey, the use of digital banking is expanding as more people realize its advantages as a good and reliable means of payment.

 

The Turkey loan market is fixed and floating, based on interest rates. Based on the tenure period, the market is divided into less than 5 years, 5-10 years, 11-20 years, and more than 20 years. The region's market is segmented into Marmara, Central Anatolia, Mediterranean, Aegean, Southeastern Anatolia, Blacksea, and Eastern Anatolia.

 

Key market players in the Turkey loan market include:

  • T.C. Ziraat Bankası A.Ş.
  • Türkiye İş Bankası A.Ş.
  • Türkiye Halk Bankası A.Ş
  • Yapı ve Kredi Bankası A.Ş.
  • T. Garanti Bankası A.Ş.
  • T. Vakıflar Bankası TAO (VakıfBank)
  • Akbank TAŞ
  • DenizBank A.Ş.
  • QNB Finansbank A.Ş.
  •  TÜRK EKONOMİ BANKASI A.Ş.

 

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"Increasing digitalization and usage of chatbots with AI features is a significant trend expected to impact the market's growth over the forecasted period. Rising demand for commercial and corporate loans, increasing demand through digital banking, and growth of small and medium-sized enterprises are the leading factors that will positively impact the Turkey loan market. Due to the wide range of online loans to meet customers' specific needs and the growing popularity of the internet channel, demand for the loan market in Turkey is growing.” said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.

Turkey Loan Market, By Type (Secured Loan and Unsecured Loan), By Provider Type (Bank, Non-Banking Financial Companies and Others (Fintech Companies)), By Interest Rate (Fixed and Floating), By Tenure Period (Less than 5 Years, 5-10 Years, 11-20 Years, More than 20 Years), By Region, Competition, Forecast & Opportunities, 2028F, has evaluated the future growth potential of loan products and provides statistics and information on market structure, size, share, and future growth. The report is intended to provide cutting-edge market intelligence and help decision-makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges and opportunities present in loan market in Turkey.


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