Asset-Backed Securitisation In Turkey

Article by Pekin & Pekin

In the last 10 years the major banks in the republic of Turkey have securitised:

• international credit card receivables;
• export receivables;
• cheques and travellers’ cheques remittances;
• electronic remittance payments (generated primarily from Turkish workers in Germany); and
• diversified payments in the international financial markets.

These future-flow transactions have provided long-term, lower-cost hard currency financing to banks in Turkey.

Turkish banks with high-quality assets but lower ratings from credit rating agencies have been able to get cheaper funds through securitisation than by borrowing from the money markets. The major banks involved in international asset securitisation have become more liquid, thus reducing risk and cost.