Fitch's Assessment of the Turkish Banking Sector

Fitch's Comprehensive Turkish Banking Report

The international credit rating agency Fitch has provided new assessments regarding the Turkish banking sector. The report indicates that Turkish banks' short-term foreign debt continues to remain high, but is expected to decline starting from 2026 with the issuance of longer-term bonds.

Investor Confidence and Monetary Policy

According to Fitch's report, the continuous tightening of monetary policy and the improvement of investor confidence are reducing refinancing risks. However, it is also noted that sensitivity to policy signals and domestic politics remains high.

Demand for Foreign Currency and Dollarization Status

The report states that since March, demand for foreign currency has increased and that currency-protected deposits have been gradually removed, leading to a rise in dollarization, although it remains below historical peaks. The statement noted, "High external financing and dollarization could reignite stability risks, demand for foreign currency, and liquidity pressures due to any policy changes, but this is not our base scenario."