ISTANBUL - Turkey will issue foreign currency bonds to individual investors starting as early as next week, Finance Minister Berat Albayrak said on Wednesday, a move that would allow it to broaden its funding sources.

It would also allow the government to tap into funds that now sit in banks as deposits. The government wants to encourage domestic savers to invest in capital markets, Albayrak, who is President Tayyip Erdogan's son-in-law, said.

But it was not clear how the move would fit with the Erdogan's frequent call for Turks to convert their foreign currency and gold savings into lira to prop up the currency.

"We will start to issue... government-backed, U.S. dollar- and euro-denominated bonds next Monday. Individual investors, our citizens, will be able to buy them," he said in a speech in Istanbul.

"In recent years, volatility has caused serious concerns for local investors. Investments have shifted to deposits. We need to mobilise those investors, those balance sheets."

A currency crisis this year has seen the lira fall as much as 47 percent against the U.S. dollar, before recovering some losses. It is now down around 30 percent year-to-date. The crisis was sparked by investor concerns about the central bank's independence and a diplomatic rift with the United States.

Economists are still worried about the impact from the crisis on banks and the broader economy.

Total bank deposits increased by more than 20 percent to 2.11 trillion lira ($391.90 billion) as of November from the end of last year, according to data from the banking watchdog.

Speaking in Istanbul, Albayrak also said the economy was entering a period where the top priority was development and growth. ($1 = 5.3840 liras)

(Reporting by Ceyda Caglayan and Ezgi Erkoyun; Writing by David Dolan Editing by Dominic Evans) ((david.dolan@tr.com; +90 212 350 7046; Reuters Messaging: david.dolan.thomsonreuters.com@reuters.net))