Turkey May Spend $3.8 Billion to Boost State Banks’ Capital
- Capital raise will allow banks to lend more to businesses
- Turkey injects capital into lenders for third time since 2019
Pedestrians pass a TC Ziraat Bankasi branch in Istanbul.
Photographer: Nicole Tung/BloombergThis article is for subscribers only.
Turkey plans to inject 51.5 billion liras ($3.8 billion) into state banks to ensure they keep lending to businesses after the lira’s record drop eroded their buffers.
Turkey’s sovereign wealth fund will boost core capital of TC Ziraat Bankasi AS, Turkiye Halk Bankasi AS and Turkiye Vakiflar Bankasi TAO as well as their Islamic banking affiliates, a senior official with direct knowledge of the matter said, asking not to be identified as the decision has yet to be announced.