Speaking to the Anatolia news agency, Özince noted that for the second half of the year he expects the banking sector to grow at a lower rate than it did in the first half; however, he added, the sector will end 2009 positively. Özince said that a growth rate above the rate of inflation will be enough for the sector. The sector has managed to overcome the non-performing loan issue and does not have problems concerning capital structure, he noted, adding that credit volume has also started to give positive signs, despite the complaints of business circles.
“The banking sector did not experience a bad year despite the economic contraction [which took place this year due to the global financial crisis]. I expect the banking sector to grow in line with the overall economy next year, even though I predict a slight decline in profits,” Özince said. In regard to interest rates, which were cut by 50 basis points last week, he asserted that he does not expect an implementation of a further cut as interest rates had already been lowered to satisfactory levels, adding that any further decline -- especially in loan interest rates -- would not yield positive results. In an assessment on the value of the Turkish lira, Özince said the lira would gain much value in the event of a possible stand-by deal with the International Monetary Fund (IMF); however, he added, in the absence of a stand-by deal, the lira will not lose value, but remain at current levels.
