Page 29 - Turkey Outlook 2023

As of December 9, the share of FX deposits in the Turkish banking
system stood at 46.9%. When the KKM is added, it is 65.2%. Chart
source: BloombergHT.

NPLs

Since 2016, many essentially bankrupt companies in Turkey have been
kept afloat with cheap loans. Ongoing regulatory forbearance and the
restructuring of loans hide the real picture, but the banks’ balance
sheets, weighed down by non-performing loans (NPLs), are in fact
among Turkey’s most serious headaches.

Cough it up

Banks only bankrupt when governments want them to bankrupt. No
such demand exists in Turkey. Officials will add something to the banks’
capital.

29 Turkey Outlook 2023 www.intellinews.com