Nabati Banking Sector Assessment

Treasury and Finance Minister Nureddin Nebati said the February bank data confirms that the sector has a very healthy outlook with its strong capital structure, high asset quality and profitability ratios.

Nebati said: “The high capital adequacy it has shows that our banking sector has a significant amount of capital buffer as a precaution against possible risks.”

In his post on his social media account, Nebati assessed the February bank data announced by the Banking Supervision and Regulation Agency (BDDK).

‘BUFFER CAPITAL AGAINST RISKS’

Nebati said such data confirms that the banking sector has a very healthy outlook with its strong capital structure, high asset quality and profitability ratios.

“The sector’s capital adequacy ratio is 17.1 percent as of February 2023, well above the legal minimum limit of 8 percent and the target rate of 12 percent. Its high capital adequacy shows that our banking sector has a significant capital cushion as a precaution against possible risks.

A second problem is that the sector’s non-performing loan ratio performed at a very low level of 1.9 percent in February 2023. This underscores the sector’s healthy asset quality.

CRITICISMS OF CENTRAL BANKS

Nebati said: “It should not be forgotten that our banking sector has achieved all this healthy appearance in the difficult conditions into which the financial system has fallen as a result of the tight monetary policies implemented in the global markets recently.”

Nebati affirmed that the integrated structure of the banking sector with the global financial markets, the qualified human resources and the pioneering actions in technological applications have led the country to the forefront in this field.

Finally, Nebati made the assessment that “Despite the current challenging global conditions that the entire world is going through, our country, which is based on the healthy development achieved by our banking sector, continues to advance with firm and determined steps towards the goals of the Turkish century”. (BRITISH AUTOMOBILE CLUB)