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President of TBB Çakar: The fact that deposits are in foreign currency and demand for loans is TL creates an imbalance

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Mehmet KAYA

ANKARA – Following the warning of Rifat Hisarcıklıoğlu, President of the Union of Chambers and Commodities Exchanges of Turkey, that the problem of business access to finance has reached a critical stage, the general managers of public banks, followed by the Bank Centrale, met at the Access to Finance Consultation Meeting held at TOBB. The general manager of Ziraat Bank Alpaslan Çakar, who is also the president of the Association of Turkish Banks, attended the meeting, the general manager of Vakıfbank Abdi Serdar Üstünsalih and the general manager of Halkbank Osman Arslan.

uncomfortable situation

Alpaslan Çakar, who gave a presentation at the opening of the meeting, compared the commercial loans of the banking sector with the previous year and presented the increase in the amount. By implicitly responding to the high cost of TL loans, Çakar said the main problem stemmed from the high demand for TL loans despite the large amount of foreign currency deposits. Alpaslan Çakar said: “Of the $ 5.3 trillion of loans, 141 billion dollars are in foreign currency. As for resources, TL resources are at the 43% level. More than 60 percent of the loans are in TL. There is a contradiction here. What am I doing in this situation? I go to the Central Bank and trade in, buy TL and make loans. It is a cost. A situation where foreign currency deposits rise and TL loans and demand rise is a problematic situation.

Claiming that the demand for foreign currency loans has decreased significantly, Alpaslan Çakar said: “This year we see that foreign currency lending has decreased by $ 14 billion. The demand for TL loans has increased a lot and put pressure on the exchange rate. We all complement each other. We all benefit from a positive situation in one of us. The distressing situation affects us all ”.

Stating that TL’s deposits are at the level of 43 percent of total deposits, Alpaslan Çakar noted that this includes currency-protected deposits reaching 1.1 trillion, which alone makes up 15 percent of total deposits.

We are able to finance growth

In his speech, Alpaslan Çakar stressed that the banking sector is healthy and continued as follows:

“As of the next period, we are aware that the management of the Turkish economy (as) is a sector built on the private sector and can function better as long as the private sector is strong. On behalf of the Bank, the Ziraat Bank or the Association of Turkish Banks, I can easily say this on behalf of the sector. An environment in which you have lost and I have won is of no use to me, it is of no use to me. My gain is good but you are losing, it doesn’t make any sense. As long as you win, I can win. The real sector and the financial sector must be united in cooperation. Economic management, authority and the real sector and the financial sector must complement each other. We act accordingly. We will continue to do so. The main thing is that the country’s budget is healthy. As long as the country’s budget is healthy, the budget of all of us will continue to function properly. We will continue to stand by each of our customers who produce, invest and employ, taking into account the environment and the climate.

Our country must grow, we have the strength, the ability, the talent and the resources to finance that growth.

Banking outlook: inflation fuels working capital needs, but …

In his presentation, Alpaslan Çakar shared basic data on the banking sector and highlighted the increase in loans to the private sector. Stating that the increase in loans reached TL 1.1 trillion in the first seven months of 2022, Çakar pointed out that TL 901 billion of these were commercial loans, while loans to large corporations amounted to TL 497 billion and loans to SMEs amounted to TL 404 billion.

Claiming that total commercial loans reached 6.5 trillion Turkish Lira and the amount granted to companies is 5.3 trillion Turkish Lira, Alpaslan Çakar said: “I know, inflation fuels working capital, but working capital also feeds prices “. he said.

TOBB President Hisarcıklıoğlu: The problem is critical

TOBB President Rifat Hisarcıklıoğlu also said that, as the Association, they have received complaints from many companies regarding access to finance, noting that SMEs in particular have had a hard time failing to find or access loans at extraordinarily costly. elevated. Hisarcıklıoğlu said: “Due to high inflation and rising costs; The need for loans for investments and working capital has increased significantly compared to previous periods. Working capital loans have become particularly critical for SMEs to continue their businesses. Therefore, given the growing need for working capital, access to credit should be facilitated. Our banks are expected to continue lending to our real sector on favorable terms, taking into account their financing costs. Hence, our real sector, overcoming all kinds of negative conditions with the least damage; It will continue to make the maximum contribution to investments, production, exports and employment ”.

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