Turkish Banks: Fund Crisis Poses No Threat to Banks
The head of the Turkish Banks Association confirmed that the investment fund crisis does not pose a threat to banks, noting that the central bank's increase in the loan ceiling is unrelated to the crisis.
Translated by Qiyas from الراي — Original source
Reuters – Alp Gacar, president of the Turkish Banks Association, said that the recent crisis in Turkey’s investment fund sector has not posed any risk to the banking sector.
Turkey’s investment fund sector is facing a worsening crisis after regulators last month ordered the liquidation of 131 funds managed by seven asset management firms, following warnings from some of them about their inability to meet redemption payments.
Gacar said at a press conference: “We do not expect this (fund-related) problem to have a negative impact on the banking sector.”
In other comments, Gacar said the central bank’s latest move to raise the cap on loans granted to small and medium-sized enterprises was a step needed by the sector and had no connection to the recent fund crisis.
