Fitch has revised its outlook on the Turkish banking sector from "neutral" to "improving", based on the decline in external financing pressures and lower overall risks.
According to the agency, Turkey adopted more traditional macroeconomic policies after the presidential elections in May 2023, while increased investor confidence in economic policy led to improved Turkish central bank reserves, reduced dollarization, and improved banks' access to external financing.
Since Turkey's economic policy change, banks' risk premiums have fallen and access to foreign markets has improved "significantly," the report said.
Source (Sky News Arabia, Edited)
