Moody's: Turkish banking system outlook remains stable
Global Credit Research - 24 Jan 2013
Frankfurt am Main, January 24, 2013 -- The outlook on the
Turkish banking system remains stable, says Moody's Investors Service in a new
Banking System Outlook published today. The key drivers of the outlook are (1)
the rating agency's view that moderate economic growth and improving sovereign
financial strength will create supportive operating conditions for banks,
despite downside risks from the euro area crisis, volatile markets and investor
risk aversion; and (2) banks' sufficient resources to absorb an expected
gradual increase in non-performing loans (NPLs). These factors are partially
offset by Moody's expectations that (1) banks' net profit margins will likely
decline further amid low interest rates and rising competition; and
(2) bank funding profiles, while still sound, are
becoming less robust with loan growth outpacing deposit growth.
The new report, entitled "Banking System Outlook:
Turkey", is now available on www.moodys.com.
Moody's subscribers can access this report via the link provided at the end of
this press release.