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Commercial Loan Growth Falls, Two Banks Suspend Use of Russian Mir Cards

TURKEY
  • Despite the low policy rate, macroprudential measures and selective credit policy led to a decline in commercial loan growth in the banking sector, Dunya report. As of Sep 9, commercial loan growth decreased to a single digit figure with 13-week annualized and exchange rate adjusted loan growth at 8.67 percent.
  • Bloomberg report that Turkey’s largest private lender by assets stopped using a payment system popular among Russian tourists following a warning by the US. Turkiye Is Bankasi AS, known as Isbank, and Emirates NBD’s Denizbank suspended transactions through the Mir system, according to the lenders. Isbank is assessing the US Treasury’s recent statement, while Denizbank’s spokesman only said late Monday that the bank is “currently unable to provide services.”
  • The Borsa Istanbul 100 stock index closed 5.3% lower on Monday, a fifth consecutive plummet and triggering circuit breakers on the way lower, ahead of the Fed rate decision on Sep 21 and the CBRT rate decision on Sep 22.
  • President Erdogan will address the United Nations General Assembly today, meanwhile, there are no major economic data releases.

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