Fitch Ratings reported that steps to simplify macroprudential regulations supported the margins of Turkish banks in the third quarter of this year.
According to the Turkish Banks Data Monitoring Report of the international credit rating agency Fitch Ratings covering the last three months, Turkish banks improved their performance in the third quarter of the year due to factors such as increasing interest rates and better than expected inflation-indexed bond earnings, as well as the simplification of macroprudential regulations.
Increasing net interest income largely compensated for the still high and increasing TL deposit costs, while trading profits and fees continued to support performance, although they were lower than in previous periods.
There was a slowdown in loan growth in the third quarter of the year due to the effect of increasing interest rates.
According to Fitch Ratings, which expects growth to remain limited given the monetary tightening process, regulatory restrictions on credit growth and high lira interest rates, the average share of foreign currency wholesale funding/non-equity of covered banks remained quite stable at the end of the third quarter.
Fitch’s Turkish Banks Data Monitoring Report covers 13 banks that constitute 83% of the banking sector assets in Turkiye.
Source: Trthaber / Prepared by Irem Yildiz