UniCredit confirms commitment to Turkey

MILANO/PARIS

Italy’s top bank UniCredit has confirmed its commitment to Turkey, where it has partnership in Yapı Kredi Bank with Koç Holding, hailing the country’s long-term positive potentials.

“There is a commitment to stay in that country,” UniCredit chair Fabrizio Saccomanni said, referring to Turkey in a speech on Sept. 18.

Speaking at the Bloomberg European Capital Markets Forum in Milan, he noted that “with a long-term approach the bank’s opinions are positive regarding Turkey,” as reported by Reuters.

But at the same event, Deutsche Bank CEO Christian Sewing said that the Turkish currency crisis took many market players by surprise, the uncertainty is high and there could be contagion risks for other emerging economies.

Organic development

UniCredit is entirely focused on organic development, its Chief Executive Jean-Pierre Mustier said during a separate event on Sept. 18, pushing back against market speculation that its management is seeking to merge with a European peer.

The lender has been the subject of persistent reports that it is seeking a tie-up with another bank, possibly France’s Societe Generale.

“I would like to insist that UniCredit has a transformation plan which is based purely on organic assumptions,” Mustier told a conference on banking regulation in Paris.

“The management of UniCredit is 100 percent focused on [its] organic development.”

Mustier made the case for larger pan-European banks that could support the region’s economies, companies and contribute to job creation.

He cited Germany as one country that lacked banks that were big enough and strong enough to meet market needs.

“The largest economy in Europe does not have banks able to support its SMEs [small and medium-sized enterprises], this is a problem. This problem is not only a German problem ... it is a European problem,” Mustier said.

“Europe will succeed if we have bigger banks which will be more efficient,” he added.