Turkish banking sector assessment by Moody’s

International credit rating agency Moody’s, in its report on Turkish banks, stated that with the normalization in monetary policy, there will be an improvement in the profitability of banks.

Reminding that the CBRT lowered the security facility rate on June 24, “This step came two days after the CBRT raised the policy rate from 8.5 percent to 15 percent. The last steps of the CBRT, which has been pursuing unorthodox policies that have also reduced the profitability of Turkish banks for a long time, brought an approach to orthodox monetary policy.” statements were included.

In the report, it was stated that the gradual normalization policy will support the profitability of the banking sector, and the assessment was made that “but the wrong steps that can be taken one after the other in the return to the orthodox policy seem to be the main risk for the banks”.