Hakan Aran, general manager of İşbank, said that the banking sector is suffering due to the regulations introduced by the central bank “new economic model”He said that it was no longer even able to support the sectors it supports.
Aran said he rebelled against the portrayal of banks as actors undermining the economic model. “So we make target plates for banks. “Look I got it down to 9 percent, they don’t give confidence” means simple” said.
Inflation is expected to fall as the current account balance is established in the new model introduced about a year ago. The model also argues that the depreciation of the TL will support exports and the low interest rate environment will boost investment and boost employment.
They complained to Nabati
To this end, the Central Bank (MB), which has continuously lowered interest rates, “iranization strategy” As part of the project, the establishment rate of securities in Turkish lira for banks was increased. In addition, steps were taken to impose additional obligations on banks if TL deposits remained below 50 percent.
Bank directors-general, expressing their dissatisfaction with this practice, had complained about MB chairman Şahap Kavcıoğlu at a previous meeting with Finance and Finance Minister Nureddin Nebati.
“It doesn’t help anyone”
Speaking at a financial summit in Istanbul, also attended by Nebati, İşbank Director General Aran stated that as a sector they were directing all lending to areas that would support the new economic model, but due to regulations they were getting to the point where they were taten could not even support the sectors supported by the model.
Aran anonymously criticized Kavcıoğlu’s decisions, saying: “We have seen that we have reached a point with the decisions that have been made where we cannot even support the sectors that are supported by the economic model. How would you benefit from lower interest rates? If you can get credit cheaper, if the price of credit gets cheaper, but access to credit becomes more difficult, it does no one any good.”
“A Credit on the Shelf” Aran said that the interest rate went down: “When it comes to making that loan accessible and turning it into production and investment, let me say you’re struggling on that. Forcing customers who prefer foreign currencies to change their preferences through banks, and if that preference does not change, forcing the affiliated banks to build long-term collateral in a way that threatens the stability of the financial system does not help new Economic model, production, exports or employment.”
Aran explained that this would mean blocking the banking sector from using its facilities. “Therefore, I would like to stress that these macroprudential measures, which are said to be temporary, should be lifted and relaxed as soon as possible to support Turkey’s new economic model.” said.
“Central bank needs support”
Responding to Reuters’ questions after the financial summit, Aran said banks also support the new economic model, saying: “Now, while I’m going towards that goal and using all my might to make that loan, why are you buying my money, my 50-60 billion (TL) in securities instead of loans, because my client is holding his money in dollars, respectively? TL? This decision was made to control inflation. In other words, macroprudential policies are not decisions made to support the new economic model, but to control inflation, which is a side effect of the new economic model. Well, if our goal is to control inflation, let’s play open-ended. That’s not his rule. Lowering the interest rate, on the other hand, doesn’t support the model of saying I took the risk of inflation. Macro precaution means I also reduce inflation.”
Aran said he rebelled against the portrayal of banks as actors undermining the economic model. “So we make target plates for banks. “Look I got it down to 9 percent, they don’t give confidence” means simple” said.
Aran notes that banks’ lending capacity has decreased “Because you are forcing me to use my 50-60 billion (TL) for something else. Let’s talk about it openly. If we support the new economic model, we support it together. While we as banks support each other, the central bank should also support us.” said.
Bank managers “complained” about Kavcıoğlu to Nebati
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