Turkish Bankers say they have done the best for economy since July 15 coup attempt
Bank chief executives have made a declaration saying they have tried to do what is best for the economy and not the sector since the coup attempt on July 15th 2016. Mr. AYDIN, Chairman of the Turkish Banking Association (TBB), has pointed out that the banking sector, which takes its power from the Turkish economy, did not hesitate to use its healthy balance sheet structure and capital strength to overcome difficulties and support the process, following the failed coup attempt on July 15th.
Aydın stated that the banking sector which tried to do the best for the economy during this process supported the sustainability of the economic growth, in total awareness of the problems faced by the country.
Talking about those days the chairman explained following:
“The words that best summarize what has been done in terms of the banking sector following the failed coup attempt on July 15, are fast, active, courageous and realistic.
Immediately after the coup attempt, on July 17, we had a meeting with the managers responsible for treasury operations of the member banks. The meeting was held in coordination with the representatives of the relevant public authorities responsible for economic management. It was determined in said meeting that the Turkish economy and banking system were strong enough to limit the shock effects and following decisions were made;
– Banking sector would provide uninterrupted services
– Financial markets would operate without any intervention
– Liquidity needed by the markets in the short term would be provided and confidence would be established in the markets fast.
Immediately after the coup attempt, on July 17, the members of the TBB members met with the managers responsible for treasury operations of the banks. The meeting was held in coordination with the representatives of the relevant public authorities responsible for economic management and determined that the Turkish economy and banking system were strong enough to limit the shock effects;
In this process, we worked with public authorities based on open communication, high coordination and sensitivity. Measures quickly implemented by our government and related institutions played an important role in reducing ambiguity in the markets, protecting confidence and preventing excessive volatility.
Another important initiative of ours was with international investors. We provided them with information about who was responsible the failed coup attempt for what purpose, the reflections, the measures taken and the political, social and economic power and resilience of Turkey.
On the other hand, measures were taken to ensure that the credit channel continued to be used effectively in order to eliminate the negative effects of the slowing trend in economic activity. In view of the fact that credit supply plays an important role in sustaining growth, a list of proposals was prepared and submitted to the BRSA, the related institutions and the government for the purpose of keeping credit lines open, accelerating loans, accelerating growth and reducing intermediation costs.
Obligations on the levels stipulated by international regulations diminished, the efficiency of capital utilization of the banks went up and gray areas causing uncertainty in credit disbursement and structuring were clarified. Thus, starting September in specific, credit supply and demand began to increase. The Turkish banking sector continued to provide new loans and practice extension of maturity and restructuring. “
SOURCE: WEB
