With its rich history and strategic location at the crossroads of Europe and Asia, Türkiye has emerged as a significant player in the global economy. The financial(commercial) environment of the nation is dynamic and ever-changing, influenced by both domestic policy and international economic trends. The capital market in Türkiye is thriving and offers chances for both domestic and foreign investors. The capital market is a desirable location for investors seeking greater returns due to its growing potential and variety of investment alternatives.
Over the past few decades, Türkiye’s economy has grown significantly, which has helped to create a stable financial environment. The Turkish government has put in place a number of efforts to stabilise the economy and strengthen the banking system. Reforms to tax laws, the building of new infrastructure, and investment incentives are some of these initiatives. The government’s dedication to fostering a welcoming business climate has increased investor confidence and sparked the nation’s economy.
Türkiye’s banking industry is well-established and essential to the nation’s financial system. The industry provides a wide range of financial services thanks to the mix of private and state-owned banks, as well as foreign banks operating in the nation. Turkish banks have shown tenacity in the face of economic difficulties, promoting stability and expansion.
Redefining banking excellence
Commercial banks make up the majority (about 91 percent) of the Turkish financial sector. Over the past ten years, Türkiye’s banking industry has grown quickly and taken up a sizable portion of the economy. Since state-owned banks own more than 40 percent of the total assets in the banking sector, Türkiye’s banking industry is typified by significant state involvement. The level of state involvement has risen recently from below 30 percent in 2016, when the sector’s growth over the previous four years was mostly propelled by the expansion of the balance sheets of state-owned banks.
Commercial banks are making it their mission to help the middle class, which is the foundation of the country’s economy, as well as numerous small companies, craftspeople, and artists. Halkbank, the first and most trusted bank in Türkiye, has specialised service departments that cater to the demands of specific market sectors. Tradesmen Banking is a dedicated division that Halkbank has launched to respond to the needs and desires of tradespeople and artisans and provide more effective, diversified, and prompt options for action.
Along with its other services, the bank also assists in the provision of financial consulting, which includes a number of initiatives, including the Female Entrepreneur Training Programme, Energy Efficiency Training and Consultancy, SME Public Academy Online Training, Jobs Security and others.
International Business Magazine awarded Halkbank the distinctions of Most Trusted Commercial Banking Company Türkiye 2023 and Best Comprehensive Financial Products and Services Provider Türkiye 2023 in recognition of their excellence.
Bridging the Gap: The Inspiring CSR Initiatives of Commercial Banking
To improve society and the environment, financial institutions are adopting the idea of Corporate Social Responsibility (CSR). Commercial banks are essential players in the global economy because they operate as intermediaries for people and companies looking for financial services. Their function goes beyond what is typically done in banking, though. Commercial banks are becoming more and more aware of their capacity to influence positive change through CSR programmes. These programmes cover a range of topics, including responsible lending practices, environmental sustainability, and community development.
Halkbank has implemented a number of programmes to support SMEs, which has helped to lessen regional development inequalities. In order to raise the rate of literacy in our society and eliminate regional differences in the literacy rate, the bank has been offering education to the illiterate population. It is also playing a significant role by participating in projects for the disabled and fostering social cohesion. Their assistance in promoting the nation’s tourism industry, culture, and sports is noteworthy.
They received the honourable accolade of Best CSR Initiative Company Türkiye 2023 from International Business Magazine as a result of their admirable achievements. Halkbank keeps revolutionising the market by incorporating social and environmental factors into all aspects of business. They are making investments in environmental sustainability, community development, and ethical lending practices. Beyond enhancing their reputations, these programmes have positive effects on people, businesses, society and the environment as a whole.
Going Above and beyond
The financial landscape of Türkiye is a vibrant and evolving space, offering numerous opportunities for investors and businesses. With a strong banking sector, dynamic capital markets, and a focus on fintech innovations, Türkiye is well-positioned to navigate the challenges and leverage its potential for sustainable economic growth. By addressing the existing challenges and implementing strategic reforms, Türkiye can further strengthen its financial landscape and become a regional financial hub.
Blog by Tamanna Shaikh
