Why Do Foreign Banks Invest In Turkey?

Aysan, Ahmet Faruk and Ceyhan, Sanli Pinar (2006): Why Do Foreign Banks Invest In Turkey?

Abstract

Sound macroeconomic policies, increasing global liquidity and higher real returns in developing countries played an important role in canalizing capital towards developing markets. Recent improvement in the developing Turkish economy brought the issue of foreign entry to the foreground. High growth potential backed by an increasing population, falling inflation rates and the birth of the mortgage sector made Turkey an ideal place to expand into. This article is not concerned about whether foreign entry is good nor does it discuss the subsequent effects. Rather, it attempts exclusively to shed light on the motivations behind entry to Turkey utilizing recent entry cases.

• Item Type: MPRA Paper
• Language: English
• Keywords: Globalization of Banking; Turkish Banking Industry; Foreign Bank Entry
• Subjects: F - International Economics > F2 - International Factor Movements and International Business > F20 - General; F - International Economics > F3 - International Finance > F36 - Financial Aspects of Economic Integration; G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages