NEWS Finance        22/12/2020

Fitch sees Turkish Banks' Asset Quality weakening in 2021

International credit ratings agency Fitch Ratings, in its report published on its website, sees Turkish Banks' asset quality weakening in 2021.


The agency summarised its report as follows:


“Growing Pressure on Asset Quality Fitch Ratings has negative outlooks on most Turkish banks’ asset quality scores, signalling that banking sector asset quality is likely to weaken in 2021. We expect the operating environment for the sector to remain challenging in the aftermath of the coronavirus pandemic, despite the economic recovery. Borrowers’ debt-servicing capacity will be pressured by the withdrawal of government stimulus packages, maturing loan deferrals and higher lira interest rates. At the same time, underlying asset quality deterioration will become increasingly visible in reported metrics as regulatory forbearance is reduced. The uncertain path of the pandemic and sensitivity to potential further lira depreciation are additional risks for banks' asset quality.”


Turkey’s net minimum wage has been raised 49% to TL 17,002 (USD 577) as of 01.01.2024       Migration communication helpline 157 available for foreigners in Turkey       Read our homepage articles on developments in the Turkish economy       Turkey’s official annual inflation rate increases to 75.45% in May 2024       Turkey’s official unemployment rate is 8.6% in March 2024       Read our BUSINESS section for latest sectoral and corporate news       Turkey’s population is 85,372,377 as of 2023 yearend       No. of foreigners visiting Turkey in 2023 increases 10.4% to 49.2 million       Turkey’s private sector foreign debt is USD 164.1 billion as of yearend 2023       Turkey’s economy grew 4.5% in 2023       FDI to Turkey is USD 10.6 billion in 2023       Turkey’s current account deficit is USD 45 billion in 2023