Turkey Plans to Inject USD 3.8 Billion into Three State Banks; Marks Third Injection in Three Years

The Republic of Turkey (Turkey), through its Sovereign Wealth Fund (TWF), plans to inject TRY 51.5 billion (USD 3.8 billion) into three state banks to boost the banks’ core capital. The banks expected to receive the injection are T.C. Ziraat Bankasi A.S (Ziraat Bank), Turkiye Halk Bankasi A.S. (Halkbank) and Turkiye Vakiflar Bankasi T.A.O. (VakifBank), along with their Islamic banking affiliates.

Why it Matters?

The injection marks Turkey’s third capital boost to banks since 2019 and aims to ensure that banks continue lending to businesses while keeping the cost of loans low after the erosion of their cash buffers due to the pandemic and the Lira’s plunge. TWF’s previous cash injection was financed through the s...