Turkey's Banking System

Today more than 50 financial institutions operate and serve clients in Turkey. Their activity is supervised by the country's banking regulation agency.

Below we look at the questions that matter most to our clients - whether foreign nationals can open accounts at Turkish banks - and discuss the most important nuances of the country's banking system.

Features of Turkey's banking system

Turkey's financial and banking systems are closely linked. Membership in the Türkiye Bankalar Birliği (Banks Association of Turkey) is a basic condition for the operation of Turkish monetary institutions.

The central supervisory body is the Central Bank of Turkey. This state authority conducts monetary policy, oversees money circulation and the stability of the financial system. The issuing regulator is also responsible for issuing Turkey's national currency - the Turkish lira (TRY).

Turkey's banking system includes several categories of banks:

• commercial banks,
• investment banks,
• development and specialized banks,
• and banks with foreign capital participation.

Commercial banks are the main players in the system. They offer the widest range of financial services.

How do Turkish banks work?

One of the defining features of Turkey's banking system is the growing use of electronic and digital technology. Today, almost all state and commercial banks offer online banking and are developing and improving mobile apps and electronic payment systems.

It's important to note that not every category of individual can open deposit accounts, sign loan agreements, or take out a mortgage.

Citizens of other countries who are not residents of Turkey are significantly limited in their rights: not every player in the country's banking sector is willing to work with foreigners. Still, some financial market participants are open to it.

Ziraat Bankası

This is Turkey's largest bank, founded in 1993. A developed branch network is its main distinguishing feature. Today the bank's representative offices operate in Russia, Uzbekistan, and Kazakhstan.

Ziraat Bank offers a standard set of services:

• opening and servicing accounts (both current and deposit);
• money transfers;
• consumer and mortgage lending;
• payroll project administration;
• cooperation with legal entities.

The bank also handles money transfers and processes transactions through Western Union. Today this service is the most popular among Russian tourists: clients of the bank can transfer large sums of money while paying a minimal fee.

Vakif Bank

The country's second-largest bank, offering an extensive list of banking services. It was founded in 1954.

This bank also actively works with clients who are Russian citizens. To open an account you need to provide the following documents:

• an international passport;
• a Russian citizen's passport;
• a Turkish tax ID number.

To become a client of the bank, a non-resident needs to deposit at least $8,000 into a Vakifbank account.

To top up the card, you can use cash or transfer money from a card of any other bank (accounts opened at Russian banks are an exception) or from a crypto wallet.

Halk Bank

This player in the banking sector focuses mainly on entrepreneurs. Its most popular services include:

• opening and servicing current, deposit, and loan accounts;
• payroll project administration;
• investment services;
• insurance;
• consumer and mortgage lending;
• safe deposit box services;
• merchant acquiring;
• online banking;
• investing in real estate, securities, stocks, and bonds.

Foreign nationals and entrepreneurs can open an account at this bank only if they hold residence permit (ikamet) status - either a long-term or a short-term (tourist) residence permit.

The application must include the standard set of documents: an international passport, a Russian citizen's passport, a Turkish tax ID number, a residence permit, and either a long-term lease agreement or documents confirming ownership of a property.

Garanti Bank BBVA

The bank's headquarters is in Istanbul. However, this player in the financial sector today has over 900 branches worldwide.

Garanti Bank BBVA does not work with foreign nationals: it does not open or service their accounts and does not approve applications for consumer or mortgage loans.

Türkiye İş Bankası

This bank is opening branches at a fairly fast pace. Today its branches operate in the United Kingdom, Kosovo, Russia, the Netherlands, and Germany.

Foreign nationals can open accounts at Türkiye İş Bankası. To do so you need to:

• visit a branch in person and present the documents required for the application to be reviewed (international passport, civil passport, Turkish tax ID number, lease agreement or documents confirming ownership of a property);
• fill out the application and confirm your identity;
• deposit funds into the opened account.

Opening an account also requires a residence permit (either long-term or short-term). Today the minimum deposit required is $5,000. These funds are not frozen on the account - they can be used (withdrawn at local ATMs, transferred to another bank card, or spent in stores).

Operating an account at a Turkish bank: what you need to know

Want to open an account at a Turkish bank? Before doing so, you need to decide on your purpose and the requirements you have for the financial institution.

Most often, foreign nationals turn to a local bank in order to:

• take out a loan;
• open a deposit account;
• open a checking account (i.e., the ability to pay for purchases and make transfers online).

Foreigners who want to obtain a loan or open a deposit account are advised to focus on the bank's policy toward citizens of other countries and on the interest rate.

Checking accounts are much simpler. Here the main problem is that it isn't possible to transfer money from a Russian account to a Turkish bank account. If you urgently need to transfer money to a newly opened card, you can use one of the following options:

• ask acquaintances living outside Russia to send the money to a specific account;
• make a personal transfer via the SWIFT payment system (this can be done at any branch of a Turkish bank);
• transfer money using one of the online payment systems (Wise, PayPal, Payoneer, etc.);
• top up the card with cash through a TurkPay terminal.

You should approach the question of opening a bank card with maximum care. Your choice affects not only the speed of transfers but also the amount of your monthly expenses tied to account maintenance fees.