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Turkey Adds to Capital Injections With $1.6 Billion for Top Bank

Pedestrians pass a bank branch of TC Ziraat Bankasi AS in Istanbul, Turkey.

Pedestrians pass a bank branch of TC Ziraat Bankasi AS in Istanbul, Turkey.

Photographer: Nicole Tung/Bloomberg
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Turkey will inject around $1.6 billion into the country’s biggest lender as part of its new drive to strengthen the capital of state banks and improve their lending power ahead of elections next year.

The move by the sovereign wealth fund to shore up TC Ziraat Bankasi AS follows a total of about $2 billion in capital increases for Turkiye Halk Bankasi AS and Turkiye Vakiflar Bankasi TAO. Turkiye Varlik Fonu, the wealth fund also known as TWF, owns all of Ziraat and holds majority stakes in Halkbank and Vakifbank.