One hundred years ago, on 16 August 1909, Deutsche Bank began trading on the Bosphorus with a branch in Istanbul called Deutsche Bank Constantinople (the branch changed its name to Deutsche Bank Istanbul in 1929). This was one of Deutsche Bank’s first offices outside of Germany, following a presence in London that dated back to 1873.
Political reforms and the increasing presence of rival institutions prompted Deutsche Bank to open a branch on the Bosporus. The business model was based on involvement in existing large-scale projects and the placement of Turkish government bonds. The branch had just been established with two offices in Istanbul, during World War I when it was charged with conducting financial transactions between Germany and its ally, Turkey. At this time, the branch had a 250-strong workforce from around the globe.
At the end of World War I, the Istanbul branch fell under the control of the victorious powers. By the time business recommenced at the end of 1923, the Ottoman Empire had become the modern Turkish Republic. Although business remained modest, limited by many economic policy regulations, the Berlin-based headquarters still devoted the branch a high level of attention.
When German-Turkish relations were terminated in 1944, the branch had to be closed. Therefore a representative office which opened in 1954 bore sole responsibility for representing Deutsche Bank’s interests in Turkey over the next four decades.
Deutsche Bank was only able to significantly expand its business following the acquisition of Bankers Trust, which had held a subsidiary in Turkey since 1987. Since 2000, the Turkish company has traded under the name Deutsche Bank A.S., and in 2004, its investment banking authorisation was superseded by a full banking licence.
Today, in the year of its 100th anniversary in Turkey, Deutsche Bank’s commitment to Turkey is stronger than ever. The Bank is one of the top banks in the intermediation of Turkey risk with foreign investors. The Bank is one of only 12 primary dealers in the Turkish government’s domestic debt auctions. It is one of the top dealers in the trading of Turkish Lira against foreign currencies. It is one of the top two providers of custody services to international investors with a 42% market share. It supports the Turkish economy by offering lending and trade finance facilities to the leading Turkish corporates. It also supplies similar facilities to the many subsidiaries of German companies in Turkey.
Through Deutsche Securities Istanbul, the entity responsible for carrying out equity brokerage activity, it is one of the leading brokers for foreign investors in Turkish equities. Through Bebek Varlik, the entity responsible for NPLs it provides the Turkish banking system with liquidity by disposing of its non-performing loans. Through Deutsche Dogan Mortgage, it provides mortgage financing to Turkish individuals.
To celebrate Deutsche Bank’s 100-year anniversary in Turkey, Sabancı University Sakıp Sabancı Museum (SSM) in Istanbul will host an exhibition entitled “Joseph Beuys and his Students – Works from the Deutsche Bank Collection”.
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