Based in London and New York, Fitch Ratings, the global ratings agency, has just issued a special report, which says that banks in Turkey are sound, and proving resilient in these challenging times.

This vote of confidence is particularly welcome, given the escalating financial problems right on Turkey's border, and in the wider Euro zone.

Fitch Ratings says that the medium term outlook for the Turkish banking sector is favourable.  But in the short term, there remain considerable challenges, which need to be well managed.

We have reported before how the Central Bank of Turkey has been praised for its macro economic management of the economy, and this report from Fitch is another vote of confidence in the Turkish banking sector.

This is a welcome reassurance for people who have got their money invested in Turkish banks. 

But won't every major economy suffer if the Euro is in trouble?
Well, yes.  But some will suffer more than others. 

Some economists and commentators are saying that the current 17 nation Eurozone is unsustainable.  If any country leaves, there will be serious economic consequences. 

Some European nations, (and their banking systems), will face a financial tsunami, whilst for others the shock waves will have less impact. Turkey is one country that we believe can withstand any Euro storm, better than most. 

Why?  There are a number of reasons, but for starters, the banks in Turkey have very little exposure to sovereign debt in the Eurozone, so if countries like Greece, Spain or Italy default on their debts, Turkish banks won't be picking up the tab. 

Just to be clear, we are not saying that Turkey will not be affected by a Euro meltdown, if it should happen.  Clearly it would be affected, given the amount of international trade involved.  But we suggest that Turkey, and its banking system, is better placed than most major economies, to come through the turmoil.

If you want to read more about this, there is a good article on the Today's Zaman web site: Read the article here.

Also, do remember that your savings are guaranteed up to a sum of 50,000 TL, per person, per bank, by the Turkish Special Deposit Insurance Fund, also known in Turkish as the Tasarruf Mevduatı Sigorta Fonu.

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