Final month, the worldwide credit standing company Fitch, which raised Turkey’s 2022 development forecast from 4.5 % to five.2 %, held a seminar on the Turkish economic system. Fitch predicted on the seminar that inflation wouldn’t decline quickly and development would decelerate in Turkey. Within the founding seminar, it was acknowledged that credit score development in Turkey will probably weaken attributable to macroprudential measures.
Credit standing company Fitch organized a webinar on the Turkish economic system. He predicted that inflation wouldn’t decline quickly and development would decelerate in Turkey. Fitch shared his prediction that inflation won’t decline quickly and development will decelerate in Turkey. Credit score development in Turkey is prone to weaken attributable to macroprudential measures.
In response to BloombergHT, it was acknowledged within the webinar that credit score development in Turkey will probably weaken because of the introduction of macro-prudential measures.
‘RISK CONTINUES FOR BANKS’
Lindsey Liddell, Fitch’s Senior Director, acknowledged that the asset high quality danger of banks in Turkey stays excessive attributable to macroeconomic uncertainty, sectoral focus, maturity construction and excessive overseas forex loans. The presentation acknowledged that asset high quality danger is a ‘slowly progressing however severe danger’.
Liddell mentioned the profitability outlook for banks will proceed to worsen. It was additionally acknowledged within the presentation that earnings development of banks lowered inflationary price pressures.
Final month, Fitch lowered its 2022 development expectation for the worldwide economic system, whereas elevating Turkey’s 2022 development forecast from 4.5 % to five.2 %. Fitch downgraded Turkey’s credit standing from B+ to B in July and affirmed its outlook as ‘detrimental’.
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