- A + A
Access to Finance

Turkey's banking system which has the 2nd largest banking sector after Russia in Europe's developing area is capable of providing financing to investors in the country with its highly liquid structure and capital. In addition to banks, Turkey's credit market also allows investors to have project financing through leasing and factoring.

In Turkey, there are three types of banks: commercial banks, development/investment banks and the participation banks that carry out their activities based on interest-free banking in compliance with Islamic finance principles which are accepted all over the world. Banks may lend to legal entities and natural persons both in local and in foreign currency, in cash, non-cash or interest-free (participation); however, banks may not provide real persons with foreign currency loans for non-commercial purposes. It is also required for those who reside in Turkey to use a bank in Turkey as intermediary while taking a loan from abroad.

Leasing and factoring are other methods of financing. Leasing may be in the form of domestic leasing, overseas leasing, sales and re-leasing or sales aid leasing. Real estate, automobile, computer, office equipment, medical devices, construction machinery, manufacturing machines and other fixed assets can be obtained through financial leasing. And factoring companies pay for the receivables documented with the invoices arising from the goods and services sold, and assume the risk of payment.

In addition to the financial institutions located in Turkey, various international development banks such as the European Bank for Reconstruction and Development (EBRD), European Investment Bank (EIB) and the International Finance Corporation (IFC) also provide finance to many investment projects in Turkey.

Banking Regulation and Supervision Agency: www.bddk.org.tr The Banks Association of Turkey: www.tbb.org.tr