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OUTLINE OF THE ONGOING STUDY ON THE TURKISH FINANCIAL SECTOR I. General Outlook of the Financial Sector in Turkey (Section # 2)
I.A. Structure of the Financial Sector by Employment and Output Sectoral share of gross domestic product and total employment
i) Sectoral share of gross domestic product at constant prices/current pries (financial intermediation, source: TurkStat, (1998-2010))
ii) Employment in financial sector (Finance, insurance, real estate and business services ((1980-2011), Source: TurkStat: Employed persons by kind of economic activity, [15+ age], (Old series))
Employment and basic indicators in the financial sector
Indicators: i) number of enterprises, ii) annual average number of employees (female/male), iii) personnel cost, wages and salaries, v) contributions to social security, vi) production value, vii) value added at factor cost)
Institutions: i) Banks, ii) factoring companies, asset management companies, securities investment associations, real investment associations and venture capital, iii) special finance houses/participation banks, iv) insurance companies, v) mutual funds, future brokerage firms and foreign Exchange offices, vi) consumer financing companies, lenders and agricultural credit cooperatives, vii) financial leasing companies. (Source: TurkStat, Financial Intermediary Institution Statistics, (2002-2010))
I.B. Assets and Liabilities of the Financial Sector by Major Categories
Assets of financial sector (Financial Sector Asset Size (% Dist.), (2002-2011), Source: BRSA, Financial Market Report)
I.C. The Number of Financial Institutions and their Scale of Operations
Number of Institutions in Financial Sector ((2004-2011), Source: BRSA; data for Banks-(1980-2010) in the title III. A.2)
I.D. SWOT Analysis for the Turkish Financial System
II. Structure of the Financial Sector by Outstanding Securities (Sections # 3&4) II.A. Government Bond Market
List of securities in Government Debt Market (1986-2011), Source: Treasury Maturity Structure of Government Debt Stock (2005-2012), Treasury
II.B. Corporate Bond Market
Development of Corporate Bond Market
Annual Statistics for the Corporate Bond Market (2006-2010), Source: Capital Market Board (CMB)
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Discussion of the main principles and procedures regarding corporate bonds, Source: Communiqué Serial: II No:22 on “Principles Regarding Registration with the Capital Markets Board and Sale of Debt Instruments”
II.C. Equities Market
Stock Market Capitalisation as a GDP Ratio (1997-2010), Source: CMB
Istanbul Stock Exchange Common Shares ((1986-2010), Main Indicators of Corporations Quoted at the ISE)
II.D. More Complex Instruments: Mortgages and Securitisation
III. Structure of the Financial Sector by Forms of Organisation (Sections # 3&4) III.A. Banking Sector
III.A.1. Restructuring of the Banking Sector in Turkey since 1980 Capital Structure of the Banking Sector, March 2011
III.A.2. Number of Banks and Branches (Source: BAT, (1980-2010-2011)) III.A.3. A Review and Assessment of the Balance Sheet Items
Volume of the accounts in banking sector (Total Assets, Total Liabilities, Off Balance-Sheet Commitments and in the Banking Sector ( i) State-owned deposit banks, ii) privately-owned deposit banks, iii) foreign banks, iv) banks under the deposit insurance fund, v) development and investment banks (thousand TRY/USD million), Source: BAT, (1980-2010)
Selected ratios of the banking sector (Source: BAT, (1980-2010) Total Assets/GDP
Assets/Liabilities Distribution (%)
Leverage Ratios (Liabilities /Asset Total; Own Funds/Asset Total; Liabilities/Own Funds)
Capital Ratios
Shareholders' Equity / (Amount Subject to Credit + Market + Operational Risk)
Shareholders' Equity/Total Assets
Shareholders' Equity/(Deposits + Non-Deposit Funds) Net Working Capital/Total Assets
Assets Quality
Total Loans and Receivables/Total Assets Permanent Assets/Total Assets
Liquidity
Liquid Assets/Total Assets
Liquid Assets/(Deposits + Non-Deposit Funds) III.B. Non-Banking Financial Sector
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(Portfolio Value Distribution (1997-2011), Source: CMB) * Funds
Securities mutual funds Foreign mutual funds Pension mutual funds Guaranteed funds Protected funds * Investment Trusts
Securities investment trusts Real estate investment trusts Venture capital investment trusts * Portfolio Management Companies
III.B.2. Banking Regulation and Supervision Agency and the NBFIs
(Balance sheet and operational indicators (2007-2011), Source: Banking Regulation and Supervision Agency (BRSA)
* Financial Leasing Companies * Factoring Companies
* Consumer Financing Companies * Asset Management Companies III.B.3. Treasury and the NBFIs
(Balance Sheet and General Indicators of Insurance Sector (2006-2010), Source: Undersecretariat of Treasury)
* Insurance Companies
IV. Profitability of the Financial Sector and Its Subsectors vis-à-vis Non-Financial Sectors (Section # 5)
IV.A. The Profitability in the Financial Sector IV.A.1. The Profitability in Banking Sector
Selected ratios on profitability in the banking sector (Source: BAT, (1980-2010) Net Profit (Losses)/ Total Assets
Net Profit (Losses)/Total shareholders’ Equity Net Profit (Losses)/Paid-in Capital
The Loans under follow-up/total assets Legal reserves/Total loans and receivables Total Assets/GDP (Share in Sector) Financial Assets/Total Assets
IV.A.2. The Profitability in Non-Bank Financial Institutions
(1998- 2007), total operating/non-operating incomes and expenses; net profit/loss in the financial sector (Source: TurStat, Treasury, BAT)
Participation Banks Insurance companies Financial Leasing Factoring Companies
Mutual funds, futures brokerage firms Foreign Exchange Offices
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IV.A.3. The Profitability of the Non-Bank Financial Institutions (2007 – March 2011) The Soundness Indicators of the financial leasing companies, factoring companies, consumer financing companies, asset management companies.
IV. B. The profitability of the Non-Financial sector (agriculture, energy, manufacturing – data of the company accounts from CBRT)
V. Key Changes in Financial Regulation since 1980 and the Present Regulatory Framework (Section # 6)
V.A. Historical Evolution of Financial Regulation in Turkey: 1980 to Present V.A.1. Historical developments from 1980 to 1999
V.A.1.1. 1985 Banking Law
V.A.1.2. Further financial developments from the mid-1980s to the late-1990s
V.A.2. Managing Financial Opening and Crisis, 1999 to Present V.A.2.1. The June 1999 Banking Act
V.A.2.2. The December 1999 Disinflation Program
V.A.2.3. The 2001 “Transition to Strong Economy” Program V.A.2.4. The 2001 Banking Sector Restructuring Program (BSRP) V.A.2.4.1. Duty Losses, the Turkish State-owned Banks,
and the BSRP
V.A.2.5. Independence of the Central Bank
V.A.2.6. Further Regulatory Developments since 2001 and under the AKP
V.A.2.7. 2005 Banking Law
V.A.2.8. Most Recent Developments V.B. The Present Regulatory Set-up
V.B.1. Institutional Division of Labour V.B.1.1. The Central Bank
V.B.1.2. Institutions and Regulatory Authorities in the Financial Sector
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Institutions in the Financial Sector Regulatory Authorities
Banks
Public Deposit Money Banks Private Deposit Money Banks Foreign Deposit Money Banks Participation Banks
Investmet and Development Banks
Banking Regulation and Supervision Authority
Non-Bank Financial Intermediaries Financial Intermediaries
Financial Leasig Companies Factoring Companies
Consumer Finance Companies Asset Management
Banking Regulation and Supervision Authority
Insurance Companies Private Pension Funds Reassurance
Other insurance companies
Treasury Securities Intermediary Institutions
Securities Investment Part. Real Estate Investment Trusts Venture Capital Investment Part. Portfolio Management Companies
Capital Markets Board
V.B.2. Preliminary Analysis of the Specificities of the Financial Institutional Structure in Turkey
V.C. Adjustments to International Standards V.C.1. Basel-I and Basel-II Accords V.C.2. The EU Criteria
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THE PRESENT STATE OF ON-GOING STUDY ON TURKISH FINANCIAL SECTOR
Chapter Progress of the Work
Chapter – I General Outlook of the Financial Sector in Turkey
The data are collected for the time periods specified in the outline, and the preliminary discussions are carried out, respectively.
Chapter – II Structure of the Financial Sector by Outstanding Securities
For Sections II.A, B, and C the data are collected for the time periods specified in the outline and the preliminary discussions are carried out, respectively.
Section II.D: “More Complex Instruments: Mortgages and Securitisation” will be completed later.
Note: In March 2007 “The Law Amending the Laws Related to Housing Finance System Nr: 5582” was enacted with the purpose of establishing the secondary market in Turkey by giving primary responsibility to Capital Markets Board (CMB). Housing Finance System Law made amendments in several laws such as Capital Markets Law, Law of Foreclosure, Consumer Protection Law, Financial Leasing Law, Mass Housing Law and Tax Laws. Moreover, two by-laws were enacted for covered debt instruments (covered bonds) and securitisation tools (asset backed and mortgage backed securities).
Chapter – III Structure of the Financial Sector by Forms of Organisation
For all sub-sections the data are collected for the time periods specified in the outline, and the preliminary discussions are carried out, respectively.
Chapter – IV Profitability of the Financial Sector and Its Subsectors vis-à-vis Non-Financial Sectors
For all sub-sections, the data are collected and the ratios are calculated as specified in the outline. However, the discussions on the raw data and the corresponding ratios are not completed yet.
Chapter – V Key Changes in Financial Regulation since 1980 and the Present Regulatory Framework
