Turkish Post Planning Postbank

“The Turkish post office (PTT) said on Thursday it was in talks with private banks to set up a ‘postbank’ at its branches nationwide, a move it said would not add to a list of state banks plaguing Turkey’s financial system. Turkey’s debt load has swollen to worrying proportions as it bails out and restructures failing state and private banks wracked by two financial crises. The second, in February, sliced almost 50 percent off the value of the Turkish lira. PTT general manager Dursun Dagasan told Reuters the bank would fill a void left by an expected reduction in the number of branches of state banks operating in Turkey’s rural areas. He added a deal would help smaller banks expand their customer base.” The GM’s statement: “‘This will not be public-sector weighted, it will be weighted to the private sector. PTT’s share in the ‘postbank’ will be below 50 percent,’ Dagasan said. ‘[W]e will not be a deposits bank,’ he said.” The bank would act as an intermediary in opening accounts, offering products and services, cash withdrawals and deposits and credit card and household bill payments. Reuters: “Dagasan said 17 trillion lira passes through PTT hands every day. If this money goes through Turkey’s banking system everyone will benefit.” The article states, “Turkey’s post office has 39,000 personnel working in more than 5,000 branches and agencies. It also runs 500 “on-line centres” providing customers access to the Internet, a number Dagasan said would increase to 1,006 by end-June 2002. Turkey’s post office made a gross profit of 57 trillion lira in 2000 ($42 million at today’s prices), but profits would fall in 2001 due to the economic downturn, Dagasan said, as input costs had far outweighed the 25 percent price hikes PTT has levied so far this year.”
Postal Insight