Garanti BBVA General Manager Mr Recep Baştuğ stated to Turkish financial broadcaster BloombergHT there was a 10 percent decrease in loan volumes on the first day after the BRSA (Turkey’s banking regulator) decision to limit the maturities of individual loans. Baştuğ also supported the ending of clemency for the treatment of non-performing loans implemented by the BRSA during the pandemic period.
Garanti BBVA General Manager Recep Baştuğ made a statement to Bloomberg HT at the Blue Breath Project press conference.
Baştuğ stated that the CBRT’s required reserve increase would not harm the FX liquidity of banks, and emphasized that the sector is healthy in terms of capital.
Sharing his plans for a sustainable green instrument, Baştuğ said, “We are at the very beginning of this business. We want to make all of our large loans and bonds from abroad within the framework of sustainability. In this way, we want to put ourselves into certain commitments and position both our customers and ourselves in healthier places in terms of the environment.”
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Required reserves will not have a significant impact on the balance sheet
Stating that the Central Bank’s reserve requirement move will not harm banks in terms of foreign exchange liquidity, Baştuğ said, “Over the years, the foreign currency balance sheet in the sector has come to a very different place. There are approximately 250 billion dollars of foreign currency deposits and 125 billion dollars of foreign currency loans. There is an abundance of foreign currency that banks cannot use now. Therefore, transferring some of these to CBRT as required reserves will not affect banks’ liquidity.” said.
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Healthy decision to end it
Stating that the end of the non-performing loan forbearance implemented by the BRSA during the pandemic period on September 30 was a very appropriate decision. Baştuğ said, “It was a macro-prudential easing made under Covid conditions. I think it is a very healthy decision to end as of September.”
Banks have sufficient capital
Making evaluations about the capital adequacy of the sector, Baştuğ said, “The sector is quite healthy in terms of capital. The industry average is 17 percent and above. Considering the BRSA-required minimum is 12%, I still think that the banking capital in Turkey is sufficient and that the banks can easily meet the loan growth needed for the upcoming quarters.”
Translation: Cem Cetinguc
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