Moody’s praises three private Turkish banks for resisting economic slowdown

International credit rating agency Moody’s stated that ISBANK, AKBANK and GARANTI BANKASI showed resistance against the economic slowdown, the depreciation of the currency and the increase in financing costs. In an evaluation made by the international credit rating agency Moody’s it was stated that Turkey’s three largest private sector banks such as İşbank, Akbank and Garanti Bank had provided strong positive data in the first half of this year, showing resistance to economic slowdown, depreciation of the currency and rising finance costs.

In the statement it said “The Credit Guarantee Fund of the government also helped. But strong figures were also achieved by the loosening of the regulation standards. We expect positive impact of the government incentive on one occasion, and control tolerance is expected to decrease in the second half of the year. “

The statement went on to say “The government helped the Credit Guarantee Fund. But strong figures were also achieved by the relaxation of the regulation standards. We expect to see positive impact of the government incentive for one time, and control tolerance to decrease in the second half of the year. “

According to Moody’s, increase in interest rate margins and government incentives have helped to grow the annual net profit of the banks. Moody’s also mentioned that net profits for İSBANK, AKBANK and GARANTI had increased by 26, 22 and 19 percent respectively.

The statement also emphasized that the expansion of the loan volume of the banks had been mainly carried out through loans given to SMEs with the driving force of government incentives in the recent period.