Fitch Disclosed The Risks For Turkish Banks

Fitch disclosed the risks for Turkish banks. The organization said that the real risk for Turkish banks is not a pandemic.

International credit rating agency Fitch Ratings published a report on how the economic conditions will be for the banking sector after the pandemic. While it was emphasized in the report that Turkey has performed well in terms of macroeconomic indicators, it was stated that the real risk for Turkish banks is not a pandemic, but external financing conditions, exchange rate volatility, inflation and monetary policy. Turkey, which is among the "Fitch 20 Economies" selected by Fitch among developed and developing countries with the best macroeconomic indicators, stands in the position of the country expected to show the best performance after China in macroeconomic indicators. According to the GDP recovery expectation index prepared by Fitch based on the economic growth before the pandemic in 2019, Turkey ranks second with a growth expectation of 8.55 percent in 2021, while China ranks first with 10.87 percent. Accordingly, it is estimated that Turkey will grow by 8.55 percent compared to the pre-epidemic. According to the report in question, among the countries compared, the highest increase in house prices was in Turkey with 32.79 percent, while Russia took the second place with 13.98 percent. According to the Covid-19 impact index made to measure the impact of the coronavirus epidemic on economic growth predictions, Fitch has revised its 2021 post-epidemic growth forecast positively only for Turkey and Taiwan. Fitch, which raised its 2021 growth forecast of Turkey by 1.61 percent compared to the pre-epidemic period and predicted that Turkey would grow less in 2021 before the epidemic.     This article has contributions of Bloomberg HT.