The Central Bank (CB) Governor Sahap Kavcioglu, the Banking Regulation and Supervision Agency (BDDK) Chairman Mehmet Ali Akben, the Banks Association of Turkey (TBB) Chairman Alpaslan Cakar, the Participation Banks Association of Turkey (TKBB) Chairman Ikram Goktas, and a variety of chair people and top executives of banks, met. The group discussed the global and national economy, the markets, and developments in the banking sector. The group further compared notes in order to ensure that economic implementations as efficient as possible, according to a statement from the TBB.
Attendees also discussed the FX (foreign exchange) rate rise and volatility and the potential impact on the profitability of banks, according to the CB Governor Kavcioglu. He said the banking sector is among Turkey’s most powerful industries and is one of the top sectors in terms of non-performing loan ratio, return on equity, capital structure, and customer valuableness. “That’s why we have a banking sector to overcome the volatilities. There is no problem,” Kavcioglu said.
The CB has also released the summary of the Monetary Policy Committee (PPK) meeting where the interest rate was lowered by 100 basis points.
The PPK will maintain an approach focused on risks to financial stability in line with the price stability goal central to its monetary policy, according to the summary. The PPK also underlined its stance that there needs to be a holistic macro policy that includes all stakeholders and contains strong policy coordination for price stability. “The PPK expects that the transitory effects on prices of supply-side factors and other factors beyond monetary policy’s control will persist through the first half of 2022. The PPK will consider completing the use of the limited room implied by these factors in December,” the summary said.
DAILY AGENDA
The Central Bank will release international reserves and foreign currency liquidity figures for October.
The Central Bank will release its Financial Stability Report.
