Turkish Banking Association (TBB) Chairman of the Board and General Manager of Agricultural Bank Hüseyin Aydın, in his written statement, stands in assessing developments in the sector and Agricultural Bank.
Turkey’s banking sector, about 35 percent during the outbreak, indicating that Aydin provides strong credit growth, this situation is not serious support for economic activity, and noted that Turkey is one of the two growing countries in the world.
Stating that the banking sector has done what is expected of it, Aydın stated that some side effects of the growth of this credit have also been experienced, with some loans going to different areas of saving rather than production, investment and trade.
Aydın noted that there has been a recovery in financial markets and an improvement in economic expectations in the last 2-3 months, and this recovery is expected to continue for the rest of the year and inflation and interest rates will decline.
Stating that some problems continue in some sectors and that there are positive developments in the industry, Aydın made the following assessments:
“Banks, 2021 in the economy of the need for resources, will continue to meet the scope of improvements in passive structures. Turkey’s economy and equity is not enough to meet the current demand for credit. Therefore, the sector, TL taken from the CBRT and abroad received sources of foreign currency from economic activity used in financing.
During the epidemic, public banks granted foreign exchange positions within legal limits. However, as of now, these positions have been completely closed and there are no currency positions. ”
Aydın emphasized that there is no difference between public banks and other banks in terms of evaluating loan clients, however, public banks have started restructuring activities earlier.
Stating that it is correct to allow profit sharing in the banking sector and this decision increases confidence in the markets, Aydın stated that the profitability of the sector is lower compared to the interests of government securities and the profitability of the industrial sector.
“WE SEE THE PREFERRED TL IN THE NEW SAVINGS ENTRY”
Hüseyin Aydın pointed out that the growth of the banking sector’s balance sheet and its relation to national income that exceeds 100 percent gives the sector flexibility to handle shocks.
Stating that the banking sector can meet the needs of the economy during the epidemic period using this flexibility, Aydın provided the following information:
“Worldwide in the course of the outbreak could only grow in Turkey and China. It was contributed by the decline of the banking sector in Turkey’s growth. Savings and capital in Turkey, credit is not enough to meet demand. The difference CBT or Foreign Currency Resources is met Markets that perform this function must be able to function properly.
The TL should be an attractive currency for both savings and investment. Because banks cannot increase their assets without increasing their liabilities. “
Aydın stated that in the last 2-3 months, there has been a recovery and inflow of resources in the financial markets, which see that TL is the preferred one for new inflows of savings and that also finance the public.
“WE EXPECT INTEREST RATES AND INFLATION TO DECREASE WITHIN THE YEAR”
TBB President Aydın pointed out that there should be no differences between public, private and foreign banks in terms of regulation, and stated that public banks had some implementation differences with private banks during the epidemic period, and this temporary situation it was reflected in customer acquisition.
Emphasizing that allowing dividend distribution is a sign of confidence, Aydın said: “It is a correct decision and will encourage the inflow of funds into banking. It will allow the protection of small investors and the development of the capital market.”
Aydın stated that the registered capital of the banking sector is TL 600 billion, “On the other hand, the rate of return is at the same level as GDS interest. The profitability of banks is not high compared to GDS or industrial companies. Trading is an activity that can only be sustained with profit, the evaluation found.
Stating that they expect interest rates and inflation to decline during the year, Aydın stated that long-term prices are much more positive, expectations for the economy are in good shape and improving.
Referring to the asset quality of banks, Aydin said: “Even in the worst period, we see that at most 20 percent of the second group’s loans have been converted into non-performing loans. The flexibility of the monitoring period of 180 days even after the end of June 2021, the non-performing loan ratio remains at a reasonable level. Provisions have been set aside for a significant part of the group’s ongoing and non-performing loans. In addition, a significant part of the loans they also have guarantees ”.
Aydin, Turkey and the Basel capital adequacy standards in the Banking Regulation and Supervision Agency (BRSA) has reported that on the target relationship.
“THE BANK OF ZIRAAT FINANCES UP TO 80 PERCENT OF THE AGRICULTURAL SECTOR”
Stating that Ziraat Bank is TL 1 trillion in size, Hüseyin Aydın said:
“The largest bank in Turkey in this regard. At the same time, the majority of lenders in Turkey. Located in 1,800 branches in the country, Ziraat Bank, which operates in the 18 countries abroad, works in accordance with legal provisions Specials. We are making money, but in reasonable line. Our return on equity is slightly below industry averages, about 10 percent. Return on assets is also directly proportional to industry averages. ”
Who said they financed the portion up to 80 percent of the agricultural sector Aydin, “Never agricultural financing access to education in Turkey and there is never a problem. A walnut tree grows 10 years in Turkey. It cannot be financed with 45 Term Deposits days. We have signed a number of applications in this regard. We care about industrial agriculture from start to finish. The loans we make from the grants are TL 160 billion. ”
Stating that the delinquency rate on agricultural loans is 1.5 percent, Aydın said: “This ratio, which is well below the industry average, is used effectively for the management of agricultural loans, which extend to producers who have interrupted agricultural activities, in payment, but continue with their agricultural activities, and installment applications are also a result.
They should not confuse us with other banks and credit unions. “Confiscation, confiscation, sales news does not reflect the truth.
“THE SALARIES OF THE ZİRAAT BANK BOARD OF DIRECTORS AND SUPERVISORS ARE SHARED WITH THE PUBLIC”
The chairman of the TBB board of directors and CEO of Ziraat Bank Aydın had the following to say regarding the news about the salaries of the board members of Ziraat Bank:
“The amount of net compensation of the board of directors and supervisory board members of Ziraat Bank is disclosed to the Public Disclosure Platform. This information is also available on our Bank’s website. The amount of gross salary is recognized in the monthly and salary account of the Board of Directors, and members receive net salaries with legal deductions.
This is a valid accounting and calculation practice for all banks and companies in the industry. The difference of 3 million lira mentioned in the TCA report regarding the monthly payment and salaries of the Board of Directors arises from the deduction of the social security premium, the income tax deducted from salaries and the stamp duty.
Board members receive a net salary of TL 19,750. We get 4 bonuses. During the audit, the gross accounting for statutory deductions was not taken into account. It is observed that salaries and salaries are also mixed with entertainment and hospitality expenses.
Limited business cards are issued to members of our Bank’s Board of Directors to cover entertainment and entertainment expenses that they have to do on behalf of our Bank due to their duties. This card can be used for limited business expenses. The total expenditure on representation and hospitality of all members of the Board is 39,406 Turkish lira in 2020. Our friends were very sorry for these accusations. Very harsh expressions were used without knowing the details of the subject “.
“PUBLIC BANKS HAVE NO RIGHT DAMAGE”
Stating that “loss of entitlement” is a technical definition in budget implementations, Hüseyin Aydın said: “Amounts that appear as loss of entitlement in the budget and are sometimes touted as” loss of entitlement of public banks have increased “they are only a technical definition. Public banks do neither the loss of rights nor the loss. If the name of this account is organized as ‘payments to support the interests of farmers’, this misunderstanding would be eliminated.” used expressions.
Aydın made the following assessments regarding the loan granted to Çukurova in 2014 regarding the indirect ownership of Turkcell:
“CFI (Çukurova Finance International) had an indirect stake in Turkcell. A loan was granted to the Çukurova Group in 2014. The loan was collected last year.
The company was established in the Virgin Islands in 2005 with several benefits in mind. These are the company’s own savings. The process was shared with the public in full transparency, both when the loan was granted and when it was closed. “
Aydın stated that the loan was not used by Turkcell and said: “There is no problem with the balance sheets. However, due to the indirect participation of Çukurova, the related shares remained under the control of Çukurova, the founding shareholder of Turkcell.”
On the date the loan was assigned Not being a member of the Turkcell board Underlining that Aydın said: “I am a member of the board of directors at a much later date. The shareholders had deemed me eligible to be a member of the board of directors in the last period regarding the settlement of disputes between the partners, which had continued since 2005. This appointment was made long after the related loan was disbursed. There is no regulation that prohibits membership, it is not a situation that is subject to a ban anyway.”