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Reduced Risks for Turkish Banks Following Policy Shift: Fitch Ratings

TURKEY

Operating environment risks, alongside macro-financial stability and external funding pressures, have reduced for Turkish banks following Turkiye’s return to a more conventional and consistent policy mix, says Fitch Ratings in its 2024 Outlook report on Turkish banks.

  • This underpins the neutral sector outlook for Turkish banks, although risks remain amid still-high inflation, slowing GDP growth and uncertainty regarding the sustainability and success of the policy adjustment in stabilising the economy, they write.
  • Fitch also note that Turkish banks remain vulnerable to exchange-rate volatility.

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