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Regulations Weigh on Turkish Banks’ 2Q23 Loan Growth: Fitch Ratings

TURKEY
  • Turkish banks’ loan growth slowed further in 2Q23, reflecting banks’ cautious risk appetites in the run-up to the elections, and has not picked up since, says Fitch Ratings in its latest quarterly Turkish Banks Datawatch.
  • This is notwithstanding the recent policy shifts, including monetary policy normalisation, the ensuing reduction in near-term macro-financial stability risks and external financing pressures, Fitch say.
  • They expect growth to remain subdued in 2H23, given the regulatory measures. However, the easing of certain measures, as part of the authorities’ policy shift, should maintain bank appetite for lending.

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