How will the 2019 be conceived in the economic front, will the cash tightness in the real sector continue, will the banks open the credit taps? Of course, almost everyone has these and other similar questions in mind. In the last days of the year, the FED increased the interest rate by a quarter point, but it also gave a clear sign that it will stop in 2019, changing the expectations for 2019 in a slightly positive sense. What do Turkish banks expect for 2019 in such environment?
What was discussed at the meeting?
In the final days of the year the top executives of the Banks Association of Turkey (TBB) members met to evaluate 2018 and talk on their expectations for 2019. A short written statement made after the meeting said: “We expect that there will be a period of decreasing threats and risks for 2019 and beyond, and opportunities will come to the forefront.” MarineDealNews has reached the details of the discussions made behind closed doors will share with you the bankers’ expectations for 2019.
13-15 percent loan growth expected in 2019
Bankers hopeful of 2019 expect a 13-15 percent loan growth in the sector in the new year. In the meeting, all banks gave their growth forecasts and some banks’ credit growth is targeted at more than 20 percent.
On the other hand, banks’ capital adequacy and liquidity ratios were also discussed at the meeting, and the bank’s general managers agreed that the banks will not have any problems in terms of both capital and liquidity in 2019.
No rapid increase expected in restructuring and bad loans
One of the most important issues on the agenda is the credit restructuring and whether the loans under follow-up will increase. According to information received from bankers attending the meeting, the general managers of the banks do not foresee a huge acceleration in loan restructuring applications and non-performing loan ratios in 2019. According to the results of the survey held at the meeting, the rate of non-performing loans, which is currently at 3.3 percent, is expected to reach 4 percent.
Another issue that bankers are focusing, and agree, on is the issue of supporting cash flow during loan restricting towards companies that are in a position to be able to recover. Recently, the TBB and Turkey Union of Chambers and Commodity Exchanges of Turkey (TOBB) have organized “Real Sector and Financial Sector Strengthening Dialogue Meetings” in five-six different provinces. At the meeting, the outputs from those meetings were also on the table and the province-based economic situation was evaluated in detail.