Turkish banking sector 2017 loan growth may exceed 15 pct: İş Bank CEO

ISTANBUL - Reuters

Turkey’s banking sector loan growth may exceed 15 percent this year, lower than an expectation of some 20 percent, Iş Bank chief executive Adnan Bali said on May 24, adding Credit Guarantee Fund-backed (KGF) loans may slow down in the rest of the year.

Speaking to reporters following a meeting in Istanbul, Bali said İş Bank granted around 15 billion liras ($4.21 billion) worth of loans backed by the KGF, a Turkish government fund guaranteeing loans to smaller businesses.

Turkish authorities have been trying to boost the banking sector, and the economy in general, with looser banking regulations and a state-backed fund to facilitate and stimulate lending to businesses.

In March, Turkey raised the volume of the KGF by more than ten-fold to 250 billion liras.

The loan volume backed by the KGF reached 160 billion lira at the end of April, presidential adviser Cemil Ertem said on Twitter earlier this month.