Page 17 - TURKRptJul20

their non-retail loans (loans to SMEs, project finance and export loans) in total loans stood at 66%, 64% and 62%, respectively, versus the sector average of 62% as of end-Q1, Seker Invest noted.
Among the state deposit banks, Halkbank (HALKB) stands out with its non-retail loans ratio of 63%, versus Vakifbank's (VAKBN) rather low 46%.
Seker said the state deposit banks should stand out with their asset ratios of far over 100%, thanks to the relatively higher weight of TRY deposits in their deposit bases.
Isbank and Yapi Kredi Bank should not face any major difficulty in meeting the 100% threshold thanks to the relatively higher weights of FX loans in their lending books of 41.5% and 42.2%, respectively, Seker says.
On the other hand, it observes, Akbank looks less favourable with its comparatively lower FX loan weight of 31.3% and higher weight of loans with a maturity of less than 3 months.
The outlook on Turkey’s banking system remains Negative with the coronavirus (COVID-19) crisis weighing on credit profiles, Moody’s Investors Service ​said​ on June 1.
The rating agency said it expected pressure on Turkish lenders’ profitability due to lower lending volumes and higher provisions. ​Additional capital strain would stem from local currency depreciation​, it also anticipated.
Deep economic disruption caused by the effects of the COVID-19 pandemic would reduce borrowers’ capacity, Moody’s added.
Finance Minister Berat Albayrak ​met​ Turkey’s top bankers on June 3. On Twitter, Albayrak said that at the meeting he shared his expectations for the financial industry during the post-pandemic era and discussed the general state of Turkish banks in a “a fruitful meeting”.
In the “text” sent to the country’s banks one day after the Ankara encounter, the watchdog said that it was closely monitoring the banks’ practices as regards their asset ratios, adding that it was pleased that most of the lenders were demonstrating the required attention to the matter.
However, the BDDK also warned that it had discovered from audits and examinations that some lenders, even though only a few, were playing with maturities, limits and definitions to formally comply with the ratio.
The watchdog cautioned lenders that in their efforts to achieve compliance they should not play with (1) the maturities of financing bills or (2) loan maturities or (3) definitions of SME, project and export credits.
Separately, Reuters reported on June 6 that private lender Yapi Kredi, a JV between local conglomerate Koc Holding and Italy’s UniCredit, has sent SMSs and emails to its clients to inform them that it was imposing a limit on FX deposit accounts, including gold deposit accounts, and a minimum duration on some such accounts as of June 13.
Yapi Kredi also said that it would not renew FX deposit accounts lower than 10,000 dollars, euro or pound sterling as of June 13. It will open deposit accounts for between 10,000 and 25,000 dollars, euro or pound sterling with a minimum maturity of three months, it added.
Paraanaliz reported on June 6 that Yapi Kredi had confirmed that it was imposing limits on FX-denominated time deposit accounts but it had denied media reports suggesting that it was also closing FX-denominated drawing
17​ TURKEY Country Report​ July 2020 ​ ​www.intellinews.com