Banks recalling loans in Turkey must be revealed if exist- banks' body
Güncelleme Tarihi:
Identities of the banks claimed to recall the loans must be revealed, the chairman of Turkish Banking Association told a weekly magazine, as the criticism against banks rises both from real sector and officials.
"The identities of the banks who are said to call their loans back should be revealed if such a situation exists," Ersin Ozince, who is also Chief Executive Officer of Isbank, told Ekonomist adding that the comments based on rumors were deteriorating country's mood.Â
Turkish Prime Minister Tayyip Erdogan had earlier criticized the banking sector for not helping the real sector amid the global financial crisis and claimed that they were recalling loans issued to companies, a move likely to slow the economy.
Ozince also said it was a mistake to make generalization for all banks in the sector. "Do you say that the cars' brakes don't work if one of them crashes you? Or do you try to solve the issue with the automaker brand who produced it?"
The problem should be solved between parties and the society would not be kept busy with this, he also said adding that tradesmen, industrialists and the banks should figure out the issue all together.
If there are additional proposals, they can be told to the banking authority, he said.
"The black and white in the industry should be clarified. I believe that if there are some mistaken, they would be under pressure to correct their attitudes. In its simpliest way, the name of the banks can be made public."
Turkish banks have done better than their Western peers during global financial crisis because of their limited foreign exposure, partly due to strict controls imposed after a deep financial crisis in 2001 which forced many banks to fold.