## Turkey: Financial System Stability Assessment

_IMF Staff Country Reports, November 9, 2007_

## Source details

**Canonical URL:** [Turkey: Financial System Stability Assessment](https://www.imf.org/en/publications/cr/issues/2016/12/31/turkey-financial-system-stability-assessment-21442)

## Other formats

- [Markdown version](/en/publications/cr/issues/2016/12/31/turkey-financial-system-stability-assessment-21442/index.md)
- [Structured JSON version](/en/publications/cr/issues/2016/12/31/turkey-financial-system-stability-assessment-21442/index.json)
- [Bundle manifest](/en/publications/cr/issues/2016/12/31/turkey-financial-system-stability-assessment-21442/bundle-manifest.json)

## Bibliographic details
- Published: November 9, 2007
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451838206.002

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### Overview
- The assessment discusses macroeconomic developments and trends in the financial system of Turkey.
- Main judgment: the financial system does not appear to face major immediate threats, but vulnerabilities remain.

### Key findings
- Turkey remains dependent on capital inflows and thus on international investor sentiment.
- Banks hold large amounts of public sector debt.
- Large holdings of public sector debt by banks make their solvency, profitability, and liquidity highly sensitive to adverse market revaluation of these securities in the event of external shocks or/and internal political uncertainties.

### Risks and vulnerabilities
- Reliance on external capital inflows creates exposure to sudden stops or reversals in investor sentiment.
- Concentration of public sector debt on bank balance sheets amplifies sensitivity to market revaluations.
- Potential triggers of adverse revaluation include external shocks and internal political uncertainties.

### Policy implications and recommendations (implicit in assessment)
- Monitor dependence on capital inflows and international investor sentiment.
- Reduce vulnerabilities from large bank holdings of public sector debt to improve solvency, profitability, and liquidity resilience.
- Strengthen macroprudential and risk-management frameworks to mitigate sensitivity to market revaluation and external shocks.

*International Monetary Fund. Monetary and Capital Markets Department "Turkey: Financial System Stability Assessment", IMF Staff Country Reports 2007, 361 (2007), accessed 9/22/2026, https://doi.org/10.5089/9781451838206.002*

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## Content in this bundle

- **Turkey: Financial System Stability Assessment; IMF Country Report 07/361; May 3, 2007**
  - [Turkey: Financial System Stability Assessment; IMF Country Report 07/361; May 3, 2007 (Markdown version)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2007/_cr07361.pdf.md){rel="alternate" type="text/markdown"}
  - [Turkey: Financial System Stability Assessment; IMF Country Report 07/361; May 3, 2007 (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2007/_cr07361.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2016/12/31/turkey-financial-system-stability-assessment-21442_