IMF Staff Country Reports

Republic of Türkiye: Financial System Stability Assessment

Publication Date:

January 18, 2023

Electronic Access:

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Summary:

Türkiye’s bank-dominated financial sector has grown markedly and shown areas of resilience since the last Financial Sector Assessment Program (FSAP). However, macrofinancial volatility has risen significantly, foreign investors have receded from local markets, and demand for dollarized and state-guaranteed foreign-exchange (FX) protected Lira deposits has risen alongside a deeply negative real policy interest rate set against the backdrop of rapidly tightening global financial conditions. An array of idiosyncratic measures has been deployed that attempt to offset the highly negative policy rate and achieve multiple objectives.

Series:

Country Report No. 2023/304

Subject:

Commercial banks Economic sectors Financial institutions Financial Sector Financial Sector Assessment Program Financial sector policy and analysis Financial sector stability Foreign exchange International organization Monetary policy

Frequency:

regular