Bloomberg writes on the anniversary of August 17: Banks are preparing for a possible Istanbul earthquake

In recent days, the occurrence of earthquakes in many regions of Turkey has constantly brought the "Great Marmara Earthquake" to mind. While experts state that Istanbul will receive a major blow from a possible earthquake, those with the opportunity and means are either leaving Istanbul or reinforcing the places where they live.

On the 25th anniversary of the August 17, 1999 earthquake that shook Turkey, Bloomberg wrote about how major companies are preparing for the expected Istanbul earthquake. 

ALTERNATIVE BUILDINGS ARE BEING SOUGHT IN OTHER CITIES

According to the article, when Denizbank paid more than 350 million dollars for the building housing its headquarters in April, this acquisition solidified the bank's place in Istanbul's most expensive commercial district. However, as soon as the ink dried on the deal for the magnificent 34-story tower, the same institution quietly began looking for alternative buildings in other cities. The reason for this was the possibility of an earthquake in Istanbul.

SOME PERSONNEL ARE BEING CALLED TO ANKARA

In addition to Denizbank, the Turkish unit of Spanish BBVA, Garanti, Qatar-owned QNB Finansbank, and the Industrial Development Bank of Turkey (TSKB) are working on backup plans. Meanwhile, the Central Bank of Turkey is calling back some personnel from all its units to Ankara, despite the new office tower under construction on the Asian side of Istanbul, the number of which has increased rapidly in recent years.

Turkey's financial center is located near the North Anatolian Fault, which has produced some of the most powerful earthquakes in the region. According to a report by the Ministry of Industry and Technology, approximately 40% of industrial facilities in Turkey, including petrochemical, automotive, and textile production, are located in the Istanbul metropolitan area. The city, with a population of approximately 16 million, and the surrounding provinces are also a hub for the global supply chain. The Bosphorus, which separates Europe and Asia in Istanbul, is the only transit point for ships loaded with oil and grain coming from Black Sea countries during the war in Ukraine.

A 7.3 MAGNITUDE EARTHQUAKE IS EXPECTED

Nurcan Meral Özel, a professor at the Kandilli Observatory and Earthquake Research Institute in Istanbul, said, "Given Istanbul's critical role in Turkey's industry, it is of great importance to assess potential losses in the event of an earthquake and to implement industrial earthquake risk management plans at the national, local, and business levels without delay."

Based on a series of calculations using historical precedents, the institute expects a 7.33 magnitude earthquake. The Disaster and Emergency Management Authority (AFAD), on the other hand, is preparing for a 7.5 magnitude earthquake, which is slightly larger than the one that struck the Southeast in February last year.

80 PERCENT OF FACILITIES WERE BUILT BEFORE 1999

According to Erdal Bahçıvan, Chairman of the Istanbul Chamber of Industry, other businesses and sectors also need to accelerate their planning. Bahçıvan said this includes making facilities more earthquake-resistant after all industrial companies in the city are inspected.

Following the events in eastern Turkey last year, Bahçıvan said that approximately 80% of industrial facilities in Istanbul's major districts were built before 1999, before the country revised its building codes. A report prepared in 2021 by TÜSİAD, Turkey's largest business group, revealed that coordination between sectors was insufficient, and that small and medium-sized enterprises stood out with low awareness and insurance coverage.