17:05 - 29.07.2026

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July 29, Fineko/abc.az. In its latest report Fitch Ratings recorded a decrease in capital indicators and gradual deterioration in the asset quality of Turkish banks.

According to the agency, in the 1st quarter of 2026, the average ratio of operating profit to risk-weighted assets of Turkish banks decreased. The main factor of weakening was cancellation of regulatory relaxations for foreign currency risk assets.

High interest rates in lira, slowing economic growth and inflationary pressures caused by the conflict over Iran have complicated the operating environment. The share of non-performing loans (NPLs) increased from 3.1% at the end of 2025 to 3.3% at the end of the first quarter of 2026. Against the background of the cancellation of regulatory benefits, average capital index Tier 1 fell from 14.1% to 11.5%.

In addition, the military conflict in the region has triggered a new wave of dollarization, with the share of foreign currency deposits in total deposits increasing from 35.2% to 38.1%.