TURKEY

Export Atlas in PDF

Turkey ranks among the 20 largest economies ($1.3bn nominal GDP in 2023) and countries (85 million inhabitants) in the world. It is a member of the OECD and the G20. The country has diversified trade relationships with Europe, the Middle East and Asia.

Turkey was the only economy among its peers that grew during the Covid outbreak thanks to strong monetary and fiscal policy support. Turkey’s real GDP achieved 7.2% growth on average between 2021-2023. However,  inflation jumped to 55% on average between 2021-2023 period. During same period, the central bank’s foreign reserves decreased due to high FX demand because of high inflation. Following May 2023 elections, The Central Bank of Turkey ( CBRT) hiked the policy rate to 50% and implemented additional policy actions to support Turkish Lira. Accordingly, The CBRT built up its FX reserves in 2023 and 2024. This made Turkish Lira more stronger against external shocks. On the fiscal front, Turkish Treasury took measures to decrease the budget deficit ( 5.2% of GDP as of 2023 mostly due to earthquake expenditures). The current account deficit declined to 4.0% of GDP in 2023 from 5.1% in 2022 thanks to robust tourism and services revenues. The improvement in current account balance continued in 2024. 

Summary

Türk Ekonomi Bankası (TEB), a reputable institution in the Turkish banking sector, was established in 1927. Since its establishment, TEB, with its expanded network of branches and a diversified range of products and services, has pursued operating in various fields of the financial sector as investment, leasing, factoring and portfolio management. In 2005, BNP Paribas, one of the strongest banks in the world and currently operating in 65 countries, became a partner of TEB. In the wake of this partnership, TEB carried its expertise in corporate, commercial and private banking over into the fields of retail banking, small business banking and SME banking. To its financial statements dated 30 June 2024, TEB is one of the major players of the Turkish financial services market with asset size of TL 499 billion and approximately 9,000 employees. TEB continues to make an increasingly greater effort in order to provide multidimensional support that will nourish Turkey’s economic and also social added-value growth. 

Currency

  • Turkish lira (TRY).

Bank accounts

  • A company is considered resident in Turkey if its legal seat or place of effective management is located in Turkey.

Factoring

  • General Factoring Agreements bear no termination date, however they are subject to 10 years maximum term due to the provisions of Turkish Obligations and Tort Law. 
  • Factoring transactions should comply with the relevant provisions of Turkish Obligations and Tort Law, which was substantially amended in 2012. Additionally, in 2012 a new “Factoring, Leasing and Consumer Financing Law” has been enacted for the sector for the first time. 
  • Turkish Factoring companies are strictly following the regulation of MASAK and are fulfilling the requirements in the scope of prevention of laundering proceeds of crime and terrorist financing.

BNP Paribas Cash Management Capabilities

Cash collections
Cheque collections
Direct debit collections
Domestic incoming transfers
Virtual IBAN
Virtual accounts
International incoming transfers
Card acquiring

Payments & collections

Electronic credit transfers are the most common method of payment used by companies to pay suppliers, the government and, increasingly, payroll. Payment cards, predominantly credit cards, are used by consumers to make retail purchases. Other electronic payment methods are available, including the TROY prepaid card and the digital wallet platform, BKM Express.

The Turkish government has declared it wants to become a cashless society by 2023. To encourage the use of electronic payment methods, a number of initiatives have been launched, including the launch of a national QR code, the Turkish QR Code, in August 2020. The use of contactless payments is increasing, with 89.6 million contactless payments made in 2020.

Electronic banking services are available from all banks. There is no national electronic banking system in Turkey, so companies use banks’ proprietary services. Transaction and balance reporting and some transaction initiation services are available.

Online and mobile banking services are available. There are approximately 100 million registered online banking users and 170 million registered mobile banking users.

Short term investments

Interest payable on credit balances

  • Interest-bearing accounts are permitted.

Demand deposits

  • Demand deposits are available for various terms. These can be denominated in TRY or major foreign currencies.

Time deposits

  • Time deposits are available in TRY or major foreign currencies with terms of one, three, six or 12 months.

Certificates of deposit

  • Banks issue certificates of deposit with terms  up to one year.

Treasury (government) bills

  • The Undersecretariat of Treasury issues Treasury bills with terms of three, six and nine months or one year.
  • Investment banks and development banks also offer bank bills, in the form of promissory notes.

Commercial paper

Money market funds

  • Mutual investment funds are available.

Repurchase agreements

  • Repurchase agreements with maturities of one, two and four weeks or three months are available on government securities. Longer terms are sometimes available.

Banker's acceptances

  • Banker's acceptances are available in Turkey.

BNP Paribas Trade Finance Capabilities

Documentary credits
Documentary collections

International trade

  • Turkey has established a customs union with the EU and implements the EU customs code. 
  • As a member of the Economic Cooperation Organisation (ECO), Turkey is expected to remove trade barriers with members to promote intra-regional trade.
  • Turkey has 18 free trade zones.