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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