Turkey’s government has warned that a longstanding household saving practice is hurting the country’s economy, according to NPR. For years, many Turks have kept gold at home rather than placing it in banks or other financial institutions.
The practice is described as a response to mistrust of banks and a way for households to protect savings against a rainy day. Gold stored in homes remains outside the formal financial system, limiting the funds available through banks for lending and other economic activity.
NPR’s supplied material does not provide details on the government’s specific proposals, the volume of gold held by households, or the economic impact officials have calculated. It also does not identify which government institution made the warning.
The issue highlights the tension between a traditional form of household financial security and the government’s interest in bringing more savings into the banking system. While families may regard privately held gold as a safeguard, authorities view the practice as a drag on the broader economy, the excerpt says.