Global Custodian Winter 2018 | Page 84

[ S U R V E Y | A G E N T B A N K S I N E M E R G I N G M A R K E T S ] Turkey TEB Securities Services It was always going to be difficult for BNP Paribas – which services this market via its strategic partnership with TEB – to match its outstanding performance here a year ago, but it comes close, and on the back of a higher rate of response than any other provider too. The average scores are rich in appreciation of the financial strength of the bank, the quality of its people, and the balance it strikes between risk and innovation. One client likes the service so much he is concerned that a shrinkage in the busi- ness he gives to TEB will dent the service he receives. The average client is still surprised that it is so cumbersome to open and close accounts at the bank, believes that settling transactions in Turkey ought not to be so hard, and indicates that cash, credit and securities ought to be less expensive. They hold that custody and transactions fees in Turkey are too high as well. TEB is not immune to the industrywide inefficiencies in complex asset servicing tasks such as corporate actions notifica- tions and proxy voting either. Deutsche Bank A.Ş. Turkey The German bank expects to do well in Turkey, where its custo- dy team is experienced as well as eager. The RMs and CSOs in Istanbul would expect to collect plaudits from clients and – at the detailed level in particular – they certainly do. Clients also find no fault with the bank’s rates of settlement, and have only highly specific complaints about asset servicing. They are less happy about the spreads and transparency in treasury services and think the bank could do a better job in containing fees and charges and the costs of credit, collateral and stock borrowing. They also indicate that the technology would benefit from some investment. Though the overall outcome is less pleasing than it was in 2017, Deutsche Bank Istanbul is getting the core services right. Citi After a testing 2017, Citi has maintained its ranking here. The client service is market-leading, and respondents agree the relationship is in rude health both now and for the foreseeable future. Settlement proceeds efficiently, and the bank helps its clients economise on sourcing and maintaining the cash and securities to avoid trade fails. Income is collected and credited efficiently, but corporate actions, proxy voting and tax services all need management attention. Clients would also like less documen- tation and more explanation. Though they do not think Citi is an expensive provider, in what was always seen as an expensive market, they do think more could be done to cut the costs of trading this market. Turkiye Is Bankasi The indigenous alternative did not receive enough responses to maintain its rated status. However, the responses submitted indicate clients are happy with the biggest bank in Turkey as a counterparty, regard their relationship with the bank as strong, and consider its pricing more than fair. WEIGHTED AVERAGE SCORES Citi TEB Securities Services / BNP Paribas Deutsche Bank Turkiye is Bankasi Share of validated responses (%) 0.18 0.42 0.33 0.06 Relationship management 4.81 5.50 5.44 n/a Market Average Global Average 5.36 5.30 Client service 5.53 5.40 5.40 n/a 5.50 5.56 Account management 4.73 4.42 5.15 n/a 4.75 5.14 Asset safety 4.29 5.14 4.23 n/a 4.52 4.60 Risk management 5.58 5.92 5.42 n/a 5.62 5.50 Liquidity management 5.55 5.47 4.87 n/a 5.22 5.14 Regulation and compliance 5.14 5.10 4.90 n/a 5.06 4.84 Innovation 4.27 4.84 4.11 n/a 4.55 4.75 Asset servicing 5.62 5.17 5.43 n/a 5.43 5.52 Pricing 5.61 5.78 5.03 n/a 5.41 5.28 Technology 5.29 5.17 5.06 n/a 5.19 5.41 Cash management and FX 5.64 5.14 5.44 n/a 5.38 5.42 Total 5.19 5.17 5.07 n/a 5.16 5.23 84 Global Custodian Winter 2018