UPDATE - Turkey aims to establish national credit rating agency

UPDATE WITH MORE DETAILS FROM HEAD OF BDDK

By Musab Turan and Handan Gunes

ISTANBUL (AA) - Turkey is aiming to establish a national credit rating agency in 2018, the country's banking watchdog chief said on Monday.

Speaking to reporters, Mehmet Ali Akben, the head of the Banking Regulation and Supervision Agency (BDDK), said the credit rating agency will most likely be established by Turkish banks.

"The exact date has yet to be set but we want to bring it to fruition sometime this year. We're aiming for its establishment this year," he said.

The agency will compile all information needed to establish a working agency within a few years, he said.

He said the agency might reduce banks' risk weight to zero and will help with their borrowing costs.

"We see that a national rating agency, which will be used by our banks, was a requirement," he underlined.

The Turkish Industrial Development Bank (TSKB) has created a study group for the creation of such an agency, he added.

Independent rating agencies are used predominately for computation of capital markets' debt instruments and exports, as well as country risks, he said, adding:

"It is obvious that we had problems in trusting these agencies."

He highlighted that this would abolish external dependence in the long term.

The agency must be independent, impartial and in compliance with international standards.