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Loans slow while interest rates decline

Loans slow while interest rates decline

BY TALIP AKTAS Despite a 10-point decline in interest rates, the annual growth of commercial loans contracted from 50% to below 20% in September, compared to the beginning of the year, in an environment where producer inflation hit 144% and consumer inflation reached 80%. Why have loans fallen sharply despite a negative real interest rate...

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Are banks profitable?

Are banks profitable?

BY TALIP AKTAS Banks’ profits exceeded 400% in the first half of 2022 (H1) while manufacturers’ difficulty in accessing finance increased. The interest rate (IR) revenues of the banking sector totaled TRY 538.4bn in H1. TRY 330.3bn consisted of IR revenues. The sector’s IR expenses amounted to TRY 166.9bn and the net IR revenues totaled...

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A one-year success story

A one-year success story

BY ALAATTIN AKTAS September 23 will be the anniversary of the Central Bank’s (CB) policy rate cut. Consumer prices rose by 2.37% in July, 45.72% in seven months and 79.60% annually. Producer prices surged by 5.17%, 70.04% and 144.61% in the same periods, respectively. The policy rate is at the same level as when inflation...

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Startup investments slow in Q2

Startup investments slow in Q2

BY SELENAY YAGCI Investments in startups slowed in the second quarter of 2022 (Q2) in Turkey. USD 114m was invested in startups in 79 funding rounds in Q2, according to the startup ecosystem intelligence platform startups.watch. This figure is the lowest funding performance in the last five quarters. This figure was USD 205m in Q2...

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Risk premium and currency is higher than the 2001 crisis

Risk premium and currency is higher than the 2001 crisis

BY FATIH OZATAY When comparing the current exchange rate and Credit default swap (CDS) premium with the 2001 crisis period, I used February 1, 2001January 31, 2022 and September 1, 2021-7 July 2022 because the 2001 crisis broke out towards the end of February. The first reason that the period ended in January 2002 is...

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Foreign exchange sales by public banks approaches USD 3bn

Foreign exchange sales by public banks approaches USD 3bn

BY SEBNEM TURHAN After the decision by the Banking Regulation and Supervision Agency, which aims to stop the depreciation of the Turkish Lira and to reduce loans, intensive foreign exchange sales were carried out by the Central Bank and public banks. Foreign exchange sales, which started with the announcement of the decision on last Friday...

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Banks’ loan volume exceeds the threshold of TRY 5tr

Banks’ loan volume exceeds the threshold of TRY 5tr

The total assets of the Turkish banking sector consisting of 57 public and private banks, which have overcome the structural changes during the pandemic and the sharp foreign exchange (FX) rate increase, exceeded the threshold of TRY 9tr last year, according to a report prepared by the audit, tax and consultation services company KMPG Turkey....

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Number of unicorns to reach 10 by 2023

Number of unicorns to reach 10 by 2023

BY SELENAY YAGCI The local startup ecosystem has raised the bar after it ended 2021 with record figures. Four more startups are expected to join the Turkish unicorn league by 2023 following Getir, Dream Games, Insider, Trendyol, Hepsiburada and Peak. In the meantime, the number of incubation centers rose from nine to 82, and the...

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Interest payments on domestic debt exceeded principal amount

Interest payments on domestic debt exceeded principal amount

BY ALAATTIN AKTAS Foreign exchange (FX) rates, inflation, and interest rates for the Treasury’s borrowing jumped after the policy rate cuts. But the surge in the interest payment to be made by the Treasury on domestic debt has paved the way for a balance change. It has exceeded the principal amount. The Treasury will make...