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Banks Warn Authorities That Profits Will Be Hit on Regulatory Burden

TURKEY
  • Reuters report that Turkish banks have warned authorities that current record profits will drop in 2023 as regulations begin to squeeze balance sheets.
  • The piece goes on to say that executives have become so concerned with government policy ahead of 2023 elections that they have launched a more public protest against Erdogan's macroprudential push.
  • Banks have been forced to absorb new rules laid down by the CBRT to improve the transmission mechanism of lower rates by discouraging hard currency deposits as well as redirecting credit to exporters.

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