IN 2013, GROWTH IN
THE TURKISH BANKING
SECTOR IS ANTICIPATED TO
ACCELERATE IN LINE WITH
ECONOMIC GROWTH.
increased loan volume in the banking sector,
while rises in current account deficit will lose
pace to some extent.
In the medium and long term, continued
decoupling is anticipated in the economic
performances of country groups in an
environment of lingering uncertainties
concerning the sustainability of public debt
stock particularly in developed countries,
and one that is lacking stability in housing,
loan and labor markets. When observed in
conjunction with Turkey’s macroeconomic
performance in the past period, this
situation opens a window of significant
opportunity for Turkey to climb to higher
rankings in worldwide national income.
The Turkish economy is susceptible to
volatilities in the world economy through
finance, trade and expectations channels.
Yet, Turkey might successfully undergo the
decoupling process thanks to its positive
outlook with respect to public finance, an
advantageous demographic structure, and a
sound banking system.
IN 2012, THE TURKISH BANKING
SECTOR GREW IN CONJUNCTION WITH
THE ECONOMY AND AT A SLOWER PACE
THAN IN THE PREVIOUS YEAR
In 2012, the banking sector grew at a slower
pace than it did in the previous year. When
addressing the decelerated growth rate,
the policies implemented by government
authorities should be taken into account.
The Turkish banks did their share in line with
the preferred policy, which aimed to vest the
economy in a more balanced structure with
respect to growth. The tightened monetary
policy practices enforced by the Central
Bank of the Republic of Turkey (CBRT) until
mid-2012 increased the funding costs of
the banking sector. That, combined with
the continued negative outlook in foreign
markets and weak domestic demand,
restricted the growth of placements.
The rate of growth in deposits, the key
financing source for the Turkish banking
sector, lost pace when compared with
previous years. The decelerated rate of
deposit growth, in contrast with earlier
years, was driven by the slowdown in
economy, as well as the sector’s turning to
alternative resources with the intention to
decrease funding costs, reduce maturity
mismatches on the balance sheet by
extending the terms on funds, and to
diversify funding resources.
In 2013, growth in the Turkish banking
sector is anticipated to accelerate in line
with economic growth. The expansion in
the loan volume of the banking sector is
expected to gain momentum in the year
ahead as compared to 2012, along with
projected resurgence in private consumption
and investment expenditures and the
ongoing low interest rates on loans within
the framework of the CBRT’s monetary
policy.
With its solid balance sheet structure,
experienced human resources, technology,
reputation, reliability, and innovative
approach, the Turkish banking industry
will remain a fundamental keystone in
the development of our country. Turkey
presents very significant potential, in
contrast to the EU, with respect to the
development of the banking sector. Besides,
the expansion of capital markets, the
incorporation of the unrecorded economy
into the recorded economy, and the sector’s
dynamism are additional factors that will
play a part in the increased expansion and
growth of the banking sector in the long
term.
CHAIRMAN’S MESSAGE
12
İŞBANK
ANNUAL REPORT 2012
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