Regulator sees room for 11 more lenders

ISTANBUL

Turkey’s Banking Regulation and Supervision Agency (BDDK) has received an application from Japan’s Bank of Mitsubishi to start a bank from scratch. EPA photo

The Banking Regulation and Supervision Agency (BDDK) may allow the number of banks in Turkey to increase to 60 from the current 49, its president has said.

“There are currently two official applications [in this regard]. We have also received expression of interest from three countries. We may allows the number of banks [in Turkey] to reach up to 60 from the current 49, if it contributes to the national banking sector,” Mükim Öztekin said at a meeting organized by the Economy Journalists Association.

Öztekin said he had overseen the finalization of the sales process of the local Deniz Bank to Russia’s Sberbank and the granting of banking permission to Odea Bank, the Turkish unit of Lebanon-based Bank Audi. The BDDK has also received an application from Japan’s Bank of Mitsubishi to start a bank from scratch and from Italy’s Intesa Bank to open a branch in Turkey, he added.

“There have also been expressions of interest in this area from China, South Korea and the Netherlands,” Öztekin said.

“The number of banks in Turkey is 49. It is not too many for Turkey … We may allow the number of banks to reach 60 if there is demand. We will assess the application with regards to the contribution they make to the banking sector in the country,” he said.