Turkey’s banks are having to cope with a host of economic, regulatory and political challenges that are being thrown at them. These include the regulations introduced in 2013 and 2014 to dampen consumer credit growth, which have seriously dented retail banking profitability.
Yet, there is plenty to be optimistic about. Banks are still benefiting from the country's high economic growth rates that have prevailed in recent years, and gross domestic product (GDP) growth of between 3% and 4% is forecast for 2015. Banks have a large domestic market to tap into. Per capita income is expected to more than double in the next 10 to 15 years. On top of this, Turkish corporations expanding at home and abroad have a growing need for corporate banking services.