‘Bank­ing sec­tor to boost Turk­ish econ­omy next year’

The Pak Banker - - Company & Boss News -

IS­TAN­BUL: The head of Turkey's Denizbank has said the bank­ing sec­tor will fi­nance Turkey's eco­nomic growth in 2011. Hakan Ates, the gen­eral man­ager of Denizbank as well as a board mem­ber for the Dexia Group, was speak­ing to the Ana­to­lia news agency.

The banker noted that the Turk­ish econ­omy is ex­pected to grow by 7-8 per­cent by the end of this year, and by 5-6 per­cent in 2011, and added that he ex­pects in­ter­est rates will slip back to the 5-6 per­cent level. "The bank­ing sec­tor in Turkey will again be the most im­por­tant mech­a­nism to fi­nance eco­nomic growth in 2011. Like this year, Turk­ish banks will make use of the de­creas­ing in­ter­est rates and pub­lic debt and in this way fi­nance their own growth. The growth in the loan mar­ket will be more bal­anced in ev­ery sec­tor, but the share of small and medium-size en­ter­prises [SMEs] in the loan mar­ket will in­crease," said Ates.

Ates stated that he ex­pects that banks will ex­pand their au­to­matic teller ma­chine (ATM) net­work in or­der to reach more cus­tomers and that they will fo­cus more on al­ter­na­tive dis­tri­bu­tion chan­nels to de­crease their unit costs by reach­ing more cus­tomers.

The head of Denizbank also touched upon his bank's new projects for the next year. He said Denizbank had man­aged to grow by 17 per­cent up to the third quar­ter of this year in t erms of con­sol­i­dated as­sets, while t he av­er­age growth of other Turk­ish banks was capped at 7 per­cent. "The growth in our de­posits was 23 per­cent in 2009, which made us the leader in the sec­tor, and growth this year is ex­pected to be 22 per­cent while t he growth in de­posits of other banks were around 7 per­cent," Ates said. -PB News

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