‘Banking sector to boost Turkish economy next year’
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