Turkey league tables

Broadening horizons

Once the preserve of a group of highly skilled FI borrowers, the Turkish loan market has now opened up to a wider range of corporate borrowers. Bank rather than fund dominated, the market avoided the excesses of the credit boom and is in good shape to take advantage of a steadily filling infrastructure and privatisation pipeline. David Cox reports.

Ancient centre

Istanbul has long been a centre for both North-South and East-West trade, boasting a vibrant banking industry. Istanbul Stock Exchange senior vice chairman, Aril Seren, explains its history, the exchange’s role in the region and considers the credit crunch.

Nourished by stability

Turkey’s derivatives market, like many of its financial markets, has had to evolve in a climate of repeated financial crises and political turbulence. Turkey is a relative latecomer to the derivatives game and the industry is still modest in size, but the infrastructure is in place for the success of the last few years to continue. Solomon Teague reports.

When small is profitable

Turkey’s small and medium-sized businesses have always been an underserved sector. They have traditionally taken on very little debt and have otherwise provided few opportunities for the banking sector. But this is now changing as the best Turkish SMEs look to expand and banks begin to develop products catering to their needs. Solomon Teague found out more.

Once bitten, twice shy

Turkey’s regulatory regime was fashioned from the furnace of the 2001 banking crisis. Since then, its banking industry has been subjected to rigorous oversight. While some rue the constraint this has placed on profitability and the business it has driven offshore, others praise the regulator for learning the cruel lessons of the market. Solomon Teague reports.

Privates on parade

Turkey is in the midst of a privatisation spree, with the government selling off its assets – predominantly in infrastructure – to meet its own financing needs. Bridges, ports and highways are up for grabs, as well as various other state owned assets. Solomon Teague looks at Turkey’s state sale bonanza.

Bracing times ahead?

When the US sneezes, they say, the world gets a cold. Emerging markets have provided some welcome evidence to the contrary, but this particularly nasty financial flu is proving its formidable powers of contagion. Turkey has been infected up to a point, so the questions now are how much worse it will get and how Turkey will fare relative to other emerging markets? Solomon Teague reports.

High yield heaven

Turkey’s macro-economic picture has taken a back seat as politics has taken centre stage. Rates are not compressing as fast as had been expected due to inflation risks, while the country remains burdened with a heavy current account deficit and an inverted fixed income curve, leaving it vulnerable. But international bond issuance is healthy, as Hardeep Dhillon reports.

Bridging east and west

Turkey straddles the divide between Europe and Asia in more ways than one. Geographically it sits on the edge of Europe, with the Middle East on the other side. Culturally, it shares a religion with its eastern neighbours, but a tradition of secularism with those to the west. As capital increasingly flows eastwards, can Turkey leverage its position as the gateway between the two? Solomon Teague reports.

Managing Turkey

The moderately Islamist AKP party has divided opinions in Turkey and abroad. The party is lauded by some for succeeding where other governments have failed in implementing much needed reforms. Others criticise it for jeopardising Turkey’s secular tradition, and for not going far enough in its reforms. Solomon Teague analyses the AKP’s economic credentials.

Down but not out

A developing asset management business and widely acknowledged growth potential leaves Turkey's ECM window wide open in 2008. However, against a background of increased market volatility, potential candidates have been slow to join the IPO pipeline. Christopher Vellacott reports.

Pious finance

More and more people are looking at ways of investing without compromising their religious beliefs, and Islamic finance is the most rapidly expanding form of ethical investing in the world. Savita Iyer asks whether this will be an important growth market for Turkey.