CHAIRMAN’S MESSAGE
WHILE LOSS OF PACE IN
WORLDWIDE ECONOMIC
ACTIVITY BECAME MORE
PRONOUNCED IN 2012,
CONCERNS PARTICULARLY
WITH REGARD TO THE
EURO ZONE COUNTRIES
WERE A TOP-PRIORITY
ISSUE ON THE CURRENT
AGENDA.
Esteemed shareholders,
UNCERTAINTIES REMAIN IN THE
GLOBAL ECONOMY.
It has been five years since the start of the
global economic crisis. While the EU has
been the greatest focus of tension in 2012,
the USA, which is undergoing an election
process, continues to support economic
growth.
In this economic climate, emerging
economies concentrated on sustaining
growth performance. However, global risk
perception that increased from the last
quarter of 2011, affected the weakened
growth performance of the world economy
throughout 2012.
The global economy clearly has yet to settle
onto a solid foundation in the time elapsed
since the start of the crisis in 2008.
While loss of pace in worldwide economic
activity became more pronounced in 2012,
concerns particularly with regard to the Euro
Zone countries were a top-priority issue on
the current agenda.
These developments continue have an
adverse effect on the banking industry
worldwide. The U.S. banking industry,
supported by the relatively more positive
outlook for economic growth in that country,
as compared to that of the Euro Zone, is also
driven by interventions from the U.S. Federal
Reserve. Still, the high debt stock and
budget deficit in the U.S. continue to keep
risk on the agenda for the coming period.
As economic activity in the Euro Zone
remains weak, high public indebtedness
and/or budget deficits represent the most
crucial issues in many EU countries. Despite
the steps taken by authorities in the region,
particularly by the European Central Bank,
to resolve these issues, the environment of
uncertainty persists in conjunction with a
slow decision-making and implementation
process. This results in sustained high risk
perception in the market and the banks
operating in the Euro Zone have difficulty in
performing their basic function - supplying
loans to the real sector – and thus, financing
growth. In spite of the historic low real
interest rates and the strong liquidity
injected into the markets by the European
Central Bank, the banking sector acts very
cautiously in making new placements.
H. Ersin Özince
Chairman of the Board of Directors
10
İŞBANK
ANNUAL REPORT 2012
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