Turkey's measures to increase state banks' loan growth credit negative - Moody's

Vakif Finansal Kiralama AS

25/02/2019 14:52

ISTANBUL, Feb 25 (Reuters) - Moody's said on Monday recent
measures by Turkey to increase loan growth from state banks are
credit negative for banks. 
    The ratings agency said the moves by three state-owned banks
to offer some loans at below market rates or current inflation
levels, as well as government requests to sustain lending, "add
unseasoned risk, and negatively affect margins".
    Moody's highlighted a decision by Vakifbank last week to cut
rates on car loans, mortgages and general consumer loans below
annual inflation rates, and Ziraat Bank and Halkbank's
participation in a government plan to provide loans at below
market rates to people struggling to pay credit card debts.

 (Reporting by Can Sezer and Sarah Dadouch
Editing by Dominic Evans)
 ((Sarah.Dadouch@thomsonreuters.com;))