Despite the Turkish lira's sharp drop in the summer of 2013 and "significantly increased" reliance on non-deposit funding, Turkish banks were able to roll over external debt at "reasonable costs" during the second half of the year, according to the Central Bank of Turkey's bi-annual financial stability report, published yesterday.

The report also notes that the banking sector's liquid foreign exchange assets are at a level that can cover "almost half of its short-term external debts", and that