Banking Regulation and Supervision Agency (BDDK) Chairman Mehmet Ali Akben stated that they have implemented nearly 50 actions and measures starting from March 16 and said, “The new type of coronavirus (Covid-19) epidemic also reminds us of the importance of having a solid banking sector.” “It is quite meaningful. This process has once again shown how important our banks are within the wheels of the economy and that they play a key role in sustaining the economic prosperity of our country.” said.
Akben, in his speech at the 63rd General Assembly Meeting of the Banks Association of Turkey (TBB), said that we are going through a period with a very busy agenda on a global scale.
Emphasizing that the new type of coronavirus (Covid-19) is not just a health problem, Akben noted that the epidemic has deeply affected many areas from economy to politics on an international scale.
Akben pointed out that the developments and uncertainties regarding the epidemic caused the global risk appetite to decline and volatility in international markets to increase, and said, “The developments made by our country during the struggle period have differentiated us positively in both health and economic outlook, and enabled us all to look to the future with hope at the point we have reached.” said.
BRSA; Stating that he has proactively participated in the fight against Covid-19, as he has done so far, and has made maximum efforts to preserve the trusted structure of the banking sector at local and international levels, Akben said:
“As a financial authority, it will continue to be our top priority for our banks, which grow steadily and manage their risks with the most advanced approaches, to operate in an environment in line with international standards. As a matter of fact, the micro and macroprudential measures we implemented with our Ministry and other institutions during the pandemic process have managed to maintain the positive development path in our financial sector.” The banking sector, which constitutes almost 90 percent of our country’s financial architecture, has undergone a significant change and transformation not only quantitatively but also qualitatively in the last 18 years. The asset size of the sector, which was 213 billion TL at the end of 2002, exceeded the national income for the first time in 2015. “It reached 5.2 trillion TL in April 2020, recording a growth of 21.9 percent in the last one-year period.”
“The ratio of loans to non-performing loans and liquidity indicators are at reasonable levels.
BRSA President Akben said that a total of 53 banks, including 33 deposit, 14 development and investment and 6 participation financial institutions, continue their activities with 203 thousand 865 personnel and 11 thousand 335 branches, and in this respect, they make a significant contribution to employment.
Pointing out that the improved inflation data and the decrease in funding costs after the third quarter of last year, together with other structural measures, made banks more willing to provide loans, Akben said, “In this context, the credit volume of the sector increased by 26.5 percent in the last year to the level of 3.2 trillion TL. “The deposit volume of our sector, which traditionally has a deposit-oriented resource structure, has increased by 31.4 percent in the last year, reaching 3 trillion TL, including gold deposits.” said.
Akben emphasized that one of the prominent features of the banking sector is its strong equity structure and said:
“Bank equity capital, which reached 511 billion TL as of April 2020 and consists of quality elements, continues to maintain its strength with a capital adequacy ratio of 18.7 percent. The positive impact of the policies pursued by our institution to keep bank profits within the body is more clearly understood in such periods. The sector is solid With its reliable structure, it has become an important anchor of stability for the Turkish economy, unlike the 1980s and 1990s. The NPL ratio of loans, liquidity indicators, foreign currency position and leverage ratio remain at reasonable levels, and the capital adequacy ratio is well above the minimum level stipulated by international standards. It is on it.”
“We have implemented nearly 50 actions and measures”
Mehmet Ali Akben emphasized that banking is one of the most thoroughly regulated and supervised sectors in the world and in Turkey.
Akben stated that the banking system has a regulatory authority that is compatible with international norms in responding to crises and shocks and is equipped with a proactive regulatory approach and audit methodology. “As can be seen, thanks to this equipment, the necessary measures have been taken immediately and with a forward-looking approach for both our banks and savers from the first day when the effects of the epidemic began to be seen.” he said.
Akben continued his speech by mentioning that the necessary flexibility was provided during the epidemic period and that it was aimed to contribute to the market and economy getting through this process with minimal damage and continued his speech as follows:
“We are aware that the flexibility and ability to act quickly provided by carrying out the process with a prior and appropriate regulatory approach is of critical importance in limiting the risks on our financial system. With this understanding, we have implemented nearly 50 actions and measures starting from March 16. Since March, The dozens of actions and measures we have taken in the last 3 months are to ensure that our business world and citizens can overcome the Covid-19 pandemic process with minimal damage. The Covid-19 pandemic is also very significant in terms of reminding us of the importance of having a solid banking sector. This process means that our banks are in the wheels of the economy. It has once again shown how important they are and that they play a key role in sustaining our country’s economic prosperity. However, in the period we live in, we are now living in a world that has strategic importance, produces high value-added products, prioritizes and supports exports, technology, information and system-based production, and contributes to growth and employment. Sectors that make a positive contribution began to determine the rules of the game. This development undoubtedly brought new responsibilities to our banks. Because the more we can direct our resources to these sectors, the less external negative factors such as the pandemic will affect us. “While we, as BDDK, contribute to the welfare of our country in line with the goal of being among the top 10 developed economies, I would like you to know that we are on your side, and that it is very valuable for the development of our country that you take the initiative with the same awareness and enthusiasm as a requirement of your primary function.”
At the end of his speech, BRSA President Mehmet Ali Akben wished that the 63rd Ordinary General Assembly of TBB would be beneficial.
It was reported that in the closed-to-press section of the meeting to be held after the speeches, TBB’s activity report, financial statements, 2020-2021 activity period budget will be discussed and the board of directors will be elected.
TBB Chairman of the Board Aydin
Hüseyin Aydın, Chairman of the Board of Directors of the Banks Association of Turkey (TBB), in his speech, said that we are experiencing a period that affects every aspect of social and economic life, and that countries have to use money and finance with known tools in order to cope with the economic reflections of this problem, which has not been experienced before, and to support economic activity. He said he was mobilizing his policies.
Stating that similar practices were experienced in Turkey and that measures to protect public health and employment were decisive, Aydın said, “A mixed fiscal, monetary and credit policy of a supportive and inclusive nature was implemented in the economy. We had room for action in fiscal and credit policy. The macro balance is sustainable.” “In addition to the positive impact of the flexibility in the regulations, banks supported the successful management of this process.” he said.
Stating that banks contributed to the financing of the public’s increasing borrowing need as a natural result of the pandemic, as well as individual and corporate loan needs, Aydın said, “Banking services and payment system were operated without interruption. In this way, the collection rate for instruments such as cheques, promissory notes and credit cards remained at reasonable levels. “Banks demonstrated good management of non-performing loans. By accelerating restructuring and re-maturity, the effectiveness in asset quality management was further increased.” made his assessment.
“The sector’s balance sheet and loans continue to grow faster.”
Hüseyin Aydın pointed out that the banking sector has continued to grow recently and said:
“The balance sheet and loans of the sector continue their trend of faster growth compared to the national income. During this period, the banking sector has shown that it is superior in technology, which is the most important component of business management. It has demonstrated its skill in providing services to customers outside the branch and mainly through digital channels with technological infrastructure. However, as seen more clearly in such periods, the demand for resources continued to fall on the shoulders of the banking sector, which constitutes 90 percent of the financial system. In this context, expanding the non-banking financial sector, increasing the diversity of institutions and instruments, “The importance of developing the capital markets and the insurance system has become evident once again. We believe that with your support, the efforts initiated in this direction need to be further accelerated to strengthen the financial system and enable it to contribute more to the financing of growth and management of shocks.”
“He who has no country has no bank or customers”
TBB Chairman Aydın stated that recent experiences show that as the economy grows and strengthens, the banking sector works more healthily, grows and becomes stronger.
Aydın continued with the following evaluations:
“As banks, we attach importance to 3 balance sheets; our customers, our banks and our country… I see that we are making more progress every day in taking into account not only our own balance sheets, but also the balance sheets of our customers and our country. However, I would also like to bring this issue to your attention. Company owners I think that the company and its partners should show the same sensitivity regarding their personal balance sheets and the balance sheets of their companies. If we are to choose one of these 3 balance sheets, everyone should be sure that we will choose the country balance sheet without dealing with small accounts. Those who do not have a country will not have a bank or a customer. We are aware of this and we carry out our activities in this direction. “We continue to do so. We would like to thank our government and everyone who contributed to the good management of this difficult period, in which we once again remember the importance of public health as well as a healthy economy, as well as you, our colleagues and employees.”
