Fitch upgrades outlook for Turkish banking sector

By Gokhan Ergocun

ISTANBUL (AA) - The US-based credit rating agency Fitch has revised its outlook for the Turkish banking sector from neutral to improving.

The agency stated that external financing pressure and macro and financial stability risks on the sector reduced following the country's adoption of "more conventional macroeconomic policies."

Increased investor confidence in Türkiye’s policy framework has led to an improvement in the Central Bank reserves, lower dollarisation and better access to external financing for banks, it noted.

As a result, banks’ foreign exchange swaps with the the Central Bank have reduced significantly, it underlined.

"These factors should all continue to support financial stability," it added.