Fitch's Assessment of the Turkish Banking Sector

Fitch's Comprehensive Report on Turkish Banking

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

Investor Confidence and Monetary Policy

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

Currency Demand and Dollarization Status

The report indicates that since March, currency demand has increased and that currency-protected deposits have been gradually lifted, which has led to an increase in dollarization, although it remains below historical peaks. The statement reads, "High external financing and dollarization may reignite stability risks, currency demand, and liquidity pressures due to any policy change, but this is not our base scenario."