Fiscal discipline to contribute to financial stability and improve competitiveness, says head of banking association
The Turkish banking sector has put its weight behind the country’s economic policies aimed at promoting stability and resilience to shocks, the head of the Banks Association of Turkiye (TBB) said on Thursday.
“We know that we need financial stability, a reasonable savings balance, a low and predictable inflation environment, and fiscal discipline to ensure low inflation,” Alpaslan Cakar said during the association’s general assembly in Istanbul.
He said: “We believe that approaches targeting fiscal discipline and low inflation will contribute to the financial stability, increase the demand for lira, keep expectations positive, create a manageable risk environment, strengthen international integration, improve the competitiveness and market dynamics, make the financial sector more effective, and contribute to the healthy growth and welfare of our country.”
After the elections in May, the Turkish government established a new economic administration,which is shaping the country’s economy based on rules, predictability and transparency to solve ongoing issues, including inflation and the current account deficit.
Cakar stated that the banking sector’s aim is to support economic activity and lead the way in contributing to the progress of society by growing the financial sector in the Turkish lira.