ICBC serving for bilateral trade cooperation

Having completed its sixth year in Turkey, Industrial and Commercial Bank of China Turkey is steadily transforming from a local boutique bank to a global financial powerhouse.

Since the acquisition of a local Turkish bank in May 2015, ICBC Turkey has acted in full accordance as a one-stop banking and financial services provider solidifying and fulfilling ICBC's global coverage in Turkey and the Middle East and North Africa region.

ICBC Turkey, together with its fully-owned subsidiaries ICBC Turkey Securities and ICBC Turkey Asset Management, provides comprehensive and tailored services and products in the fields of corporate banking, small and medium-sized enterprise banking, retail banking, investment banking and fund management and offers customers financial solutions through its mobile and internet banking, 39 domestic branches and 20 securities outlets with over 840 employees.

An outstanding example for the financial cooperation between China and Turkey, ICBC Turkey upholds its strategic positioning of "acting local, covering surrounding regions and connecting Eurasia" within the context of the Belt and Road Initiative and Turkey's Middle Corridor Initiative.

The bank focuses on serving Turkey's economic and social development and fortifying China-Turkey trade cooperation through investments, infrastructure and mergers and acquisitions projects for Turkish and Chinese enterprises, while strengthening the layout of the Mediterranean region and expanding operations into neighboring countries such as Israel, Greece, North Macedonia, Azerbaijan and Georgia, particularly by providing a full package of project and structured finance services which complement the Belt and Road Initiative.

Today, thanks to ICBC's role in Turkish banking, China has become Turkey's third-largest trade partner and second-largest importing country. Turkey's position as a key market for foreign investment from Chinese public contracting companies has increased.

As the first Chinese-funded financial institution in Turkey, ICBC Turkey possesses natural strengths related to language, habits and information in serving Chinese enterprises and boosting their competitiveness by facilitating their processes in communication, working methods and business models.

In 2018, ICBC Turkey successfully launched CHINEX, a direct money transfer service for currencies including renminbi, US dollars, euros and pounds from Turkey to all banks located in China, deepening connectivity between the two nations.

Through thick and thin, including the unprecedented times the world has been facing due to the pandemic, ICBC Turkey has managed to achieve an unrivaled asset increase of 424 percent since the acquisition in 2015. In particular, ICBC Turkey has captured the lowest nonperforming loan ratio in the Turkish banking sector with 0.09 percent as of June 2021, compared to 4.88 percent in June 2015.

Empowered by being the first RMB bank in Turkey, ICBC Turkey has enabled the Central Bank of the Republic of Turkey, or CBRT, to open its first ever RMB account.

ICBC Turkey has also acted as a joint lead underwriter and a bookkeeper of the first Panda bond in RMB proposed to be issued by the Ministry of Treasury and Finance of Turkey.

Striving to be the bank of choice for the BRI, ICBC Turkey serves as an important promoter of internationalization and cross-border circulation of RMB between China and Turkey, and a leader in financial product and service innovation covering instruments including but not limited to deposits, trade finance, clearings, settlements, foreign exchange transactions, project loans, China's interbank bond market investment and bulk commodity trades.

In September 2020, taking advantage of the ICBC Group's global RMB clearing network, ICBC Turkey assisted in the completion of a 130-million-yuan ($20.1 million) loan for VakifBank－the second-largest State-owned bank in Turkey－within the scope of a SWAP agreement to promote trade finance with local currency.

Community-driven and committed to fostering cultural integration and social exchanges between China and Turkey, ICBC Turkey sponsored the Shanghai Philharmonic Orchestra's first concert in Istanbul and organized the annual ICBC Silk Road Cup Table Tennis Tournament in 2019. In the same year, the bank curated an art exhibition on successful stories of Chinese enterprises in Istanbul and a seminar undertaking the economic and cultural ties between China and Turkey.

In order to direct operations toward sustainable and responsible banking, ICBC Turkey is helping Turkey develop local renewable energy sources and encouraging private sector investment in the sustainable energy sector.

ICBC Turkey has provided joint syndication to the Alenka Kiyikoy Wind Power Plant Project in Turkey together with the European Bank for Reconstruction and Development, or EBRD, in January 2020.

The Kiyikoy WEPP Capacity Extension is not only expected to help save approximately 99.70 metric tons of carbon dioxide emissions per year but also help Turkey to reach its 2023 target early of producing 30 percent of its electricity from renewable energy.

Thanks to its innovation capabilities and prudential risk management approach, ICBC Turkey and its subsidiaries have gained recognition from both local and global organizations and publications throughout the years.

ICBC Turkey Securities was awarded as the "Best Investment Bank", for three consecutive years starting from 2017, by the Turkish Capital Markets Association in the category of "Leader of Financial Intermediation Transactions".

In 2018, ICBC Turkey was chosen the "Best International Bank of the Year" by a prominent local media outlet. Another recognition came from International Banker magazine in 2019, with it awarding ICBC Turkey with "Best Commercial Bank of the Year－Turkey" and the "Best Investment Bank of the Year－Turkey" titles.

According to the long-term commercial targets set between China and Turkey, total trade volume is projected to exceed $100 billion by the end of 2021.

The integration of the systematic infrastructure between China and Turkey is set to accelerate trade significantly. Adhering to its global vision for the construction of the BRI in the last six years, ICBC Turkey has achieved constant and strong growth in terms of size, quality, profit and benefit, even in environments of economic volatility.

Looking ahead, the bank will continue to fulfill its social responsibilities, serve the best interests of local economy and act on its role to deepen mutual understanding and friendship between China and Turkey, as well as promote economic and trade cooperation and cultural exchanges between the two countries.

Planning on further investing in digital channels along with the establishment of more advanced fintech products in an environment of open banking, ICBC Turkey is aiming to expand its geographical range in an efficient way with more emphasis on financial markets and asset management.