Fitch's Assessment of the Turkish Banking Sector

Fitch's Comprehensive Report on Turkish Banking

The international credit rating agency Fitch has made new evaluations regarding the Turkish banking sector. The report states that the short-term external debt of Turkish banks remains high, but is expected to decline starting from 2026 with longer-term issuances.

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 stated that sensitivity to policy signals and domestic politics remains high.

Foreign Currency Demand and Dollarization Status

The report highlights that foreign currency demand has increased since March and that currency-protected deposits have been gradually lifted, leading to an increase in dollarization, although it remains below historical peaks. The statement said, "High external financing and dollarization could reignite stability risks, foreign currency demand, and liquidity pressures following any policy changes, but this is not our base scenario."