Ebru Tuncay

Turkey’s central bank is expected to take steps soon to bring lending costs closer to its newly cut policy rate, especially for some corporate loans, three bankers told Reuters, after the bank said spreads between the two rates had widened.

Some Turkish banks are curtailing corporate lending after the government’s latest raft of regulations raised their costs and forced many to cut their balance sheet risks, five banking and private sector sources told Reuters.

Turkish Finance Minister Nureddin Nebati has met several bank executives and the BDDK financial watchdog to discuss, in part, long-term bond holdings, two banking sources and the ministry said on Tuesday.

A spokesperson for Facebook-parent Meta Platforms Inc <a href=“https://www.reuters.com/companies/META.O/“target=“_blank”>(META.O)</a> said on Wednesday that they did not agree with the findings of Turkish competition authority, after it fined the company 346.7 million lira ($18.64 million).

Several big Turkish banks want to issue dividends to shareholders after posting record profits in 2022 and the country’s BDDK banking watchdog is considering the request, three banking sources familiar with the issue said.

An expected capital increase will help Turkey’s Ziraat Bank to spearhead President Tayyip Erdogan’s drive to boost economic growth and tackle chronic current account deficits this year, the head of the country’s largest lender told Reuters.

Turkey is expected to take more policy steps to cool stubbornly high inflation after this month’s local elections, setting the stage for more pain for Turks already struggling after years of soaring prices, according to data and some economists.

Turkish banks will pay the price throughout next year as challenges linger from the country's economic turnaround, the chief executive of lender Isbank said in an interview, adding he expects the central bank to begin cutting interest rates this November.

The CEO of Turkish grocery delivery company Getir said on Monday he had been removed from his position, weeks after a shareholder meeting approved an updated restructuring plan that was disputed by one of the firm's co-founders.

Getir, the Turkish grocery delivery company, has reappointed its chief executive after he was removed last week, a document seen by Reuters showed on Thursday, as struggle for control of the company continues.