Board hears 12 banks’ defense in rate-fixing case

Posted by meb at February 25th, 2013

Turkey’s Competition Authority (RK) hears the defense today of a dozen banks under investigation for alleged collusion in setting loan rates.
The RK will hear the banks’ cases at 10 a.m. at its headquarters in Ankara. The verdict is expected in the following 15 days. RK said back in November it would seek to issue a collective fine worth TL 4.8 billion ($2.65 billion) if it finds the banks guilty of colluding on interest rates. The 12 banks, which include the country’s four largest banks — Akbank, Garanti Bank, Ä°ÅŸ Bankası and Ziraat Bankası — allegedly agreed to cooperate and set interest rates as high as 14 percent for customers, an RK investigation dating back to November 2011 says. (more…)

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More Turkish banks on foreign buyers’ radar, Fitch says

Posted by meb at January 17th, 2013

A strong economy and resilient banking sector will likely attract more foreign banks seeking Turkish bank acquisitions this year, Fitch Ratings said in a written note on Monday.
The rating agency said possible acquisitions of Turkish banks by foreigners could improve the credit ratings of the banks purchased “because buyers are likely to be more highly rated.”

“Turkey’s medium-sized banks are the most likely acquisition targets because of uncertainty about the long-term sustainability of their operations as independent entities. … The sector’s healthy credit fundamentals, market size [including a large bankable population] and the broadly favorable outlook for Turkey’s economy make it particularly attractive,” Fitch said. Fitch cited good liquidity, held up by a stable retail deposit funding base, low leverage, still wide margins by international standards and strong credit demand as factors for Turkey’s strong banking sector. “But a return to rapid loan growth could lead to a build-up of risks in the system,” it added. (more…)

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Interest rates to remain low, TEB executive predicts

Posted by meb at April 19th, 2011

The Turkish Central Bank will probably keep its benchmark interest rates at a record low until year-end and may extend higher reserve requirements for banks into 2013, according to Istanbul-based Türk Ekonomi Bankası, or TEB.

The Central Bank has cut interest rates by 75 basis points since December to help slow capital inflows, while increasing reserve requirements to cap growth in loans and contain the current-account deficit. The bank last increased the reserve requirement for one-month deposits to 15 percent from 10 percent on March 23. (more…)

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European bank revises Turkey’s growth outlook

Posted by meb at October 19th, 2009

The European Bank for Reconstruction and Development, or EBRD, which has been withdrawing gradually from Central European countries, plans to prioritize Turkey.

EBRD is the first international finance corporation, among many others, to revise Turkey’s economic growth in a positive direction.

The bank had published a report estimating Turkey’s 2010 growth to be 1 percent. The bank has revised that outlook to 3 percent.

The economies of eastern and southern Europe including Turkey, will experience an economic contraction this year, however, signs of recovery will begin next year, said the EBRD.

Turkey’s economy will contract nearly 6 percent in 2009, however that contraction rate is still well above contraction expected in other countries in the region. (more…)

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Minister unveils plan to turn Istanbul into global finance center

Posted by meb at October 5th, 2009

Discussed for months but never detailed, key points of a government plan to turn Istanbul into a global financial center were finally revealed by a top minister on Friday.

Speaking at a press conference organized as part of the International Monetary Fund-World Bank annual meetings, Deputy Prime Minister Ali Babacan said Istanbul would soon become “a significant and prominent financial center.” Babacan tied the effort to the “void” created by the global financial crisis.

“Istanbul is the natural finance center of Turkey,” he told journalists. “We need to increase its competitive power regionally and globally. The competitive strength of our economy is very important.”

The project “Istanbul International Financial Center,” or IFC Istanbul, is included in the ninth development plan covering 2007-2013.

“In this action plan, in order to have Istanbul as a global finance center, priorities have been determined to build a legal infrastructure that operates on international standards, to increase diversity of financial products and services and to develop a simple and effective system,” said Babacan. “We need to enhance our legal infrastructure.” (more…)

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Central Bank discusses pace of rate cuts

Posted by meb at October 2nd, 2009

Turkey’s Central Bank said its monetary policy committee has discussed slowing the pace of an 11-month series of cuts to the benchmark interest rate.

The bank isn’t convinced by signs of economic recovery and decided to maintain its easing bias, it said in an e-mail statement of the minutes of the Sept. 17 meeting in Ankara.

Still, there’s a growing belief that the worst of the crisis has passed and “it’s appropriate to adopt a flexible policy and consider the possibility of slowing the reductions,” it said.

The bank lowered the benchmark rate by half a percentage point to a record 7.25 percent at the meeting, taking total reductions over the last 11 months to 9.5 percent, the biggest of any G-20 nation. Gross domestic product is likely to contract 6.5 percent this year, according to International Monetary Fund forecasts announced Thursday. (more…)

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Banking raises its Q2 profit 33 percent

Posted by meb at September 17th, 2009

Turkish banking industry proves to be a high-profit business as its profit rises 33 percent to 11 billion Turkish Liras in the second quarter of the year. Although the banking industry has been displaying a great performance despite the global economic crisis, however the rising number of non-performing credits may be perceived alarming

The Turkish banking sector has increased its net profit by 33 percent in the second quarter of this year compared to the same period last year, official figures revealed.

The sector raised its net profit to 11 billion Turkish Liras, according to the quarterly Financial Markets Report prepared by the Banking Regulation and Supervision Agency, or BRSA. (more…)

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Banking watchdog predicts further recovery in Turkish economy in 2010

Posted by meb at September 15th, 2009

The Banking Regulation and Supervision Agency (BDDK) has announced they expect the Turkish economy, which has already entered a recovery phase, to recuperate further in 2010, albeit gradually.

Evaluating the impacts of an ongoing global financial crisis on the Turkish economy in their “Financial Markets Report,” the banking watchdog said recent tax reductions in various sectors have contributed much to rejuvenation in the markets, adding that the current recovery trend is expected to continue in 2010.

The BDDK report estimates, however, that the recovery will not be instant but rather slower. Mentioning certain risks in the market, the report reads: “Although international markets signal the end of the crisis is not far away, a recovery will arrive only step by step, not directly. The fact that companies have difficulty accessing loan sources and the increasing debt of the private sector add to concerns that the crisis’ risks will prevail for some time.” (more…)

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