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TURKEY: Fitch Ratings Says Turkish Banks Under Margin Pressure

TURKEY
  • The operating environment for Turkish banks has continued to improve in 1Q24, reflecting reduced macroeconomic and financial stability risks and increased investor confidence, Fitch Ratings says in its latest quarterly Turkish Bank Datawatch.
  • However, monetary tightening has resulted in profitability pressures, given loan growth caps and higher lira funding costs, and retail borrowers’ weaker repayment performance. Nonetheless, Fitch expects banks’ provisioning and profitability buffers will remain sufficient to weather the impact of monetary tightening.
  • Full report here.

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