S&p: Turkey's Banks' Weakness Low Per Capita İncome, Strangth Stability

Turkey's banking system enjoys its strength but suffers from lower per capita income than peers', according to areport released by the international rating company Standard & Poor's on Tuesday.

The company launched its "Banking Industry Country Risk Assessment: Turkey" on

Ratings Direct, citing that the strengths of the sector are as follows:

"Generally moderate household and corporate debt, bank regulation and supervision that compare favorably with those in many emerging economies and a stable banking industry with adequate ability to price risk."

Lower per capita income than peers' was a major weakness of Turkey's banking sector, stated in the S%P report, adding the other weaknesses as follows:

"Banks' overstretched funding positions because of low domestic savings, high short-term foreign debt and an underdeveloped debt market. Indirect credit risks from a high amount of commercial loans in foreign currency." - Istanbul