What is noted as a risk to Turkish economic growth related to its banking system?

The dependency on foreign capital is recognized as a significant risk to Turkish economic growth in relation to its banking system. When a country relies heavily on external sources of funding, it can lead to vulnerabilities in the face of global market fluctuations, interest rate changes, or shifts in investor sentiment. This dependence may result in increased financial instability; for example, if foreign investors withdraw their capital suddenly, it could cause a liquidity crisis in the banking system.

Additionally, this reliance can limit the central bank's ability to manage monetary policy effectively, particularly in times of crisis, and may impact the overall economic growth trajectory. Managing debt levels and ensuring that capital inflows are stable and sustainable are crucial for maintaining economic health.

In the context of the other options, factors such as the strength of the Turkish lira, excessive domestic borrowing, and low foreign investment may play roles in the economy but do not directly reflect the critical nature of dependency on foreign capital. Each of these elements can influence the banking system, yet they do not encapsulate the broader systemic risk associated with being overly reliant on external funding.