Turkish Economy Shows Resilience Amid Risks: TBB General Assembly Highlights

The 69th General Assembly of the Banks Association of Turkey (TBB) took place at the Ziraat Towers Auditorium in the Istanbul Finance Center, with the participation of prominent figures. Speaking at the opening of the General Assembly, TBB Chairman Alpaslan Çakar emphasized that despite increasing geopolitical risks, changes in trade policies, and a high-uncertainty environment in the global economy, the Turkish economy exhibited resilient performance.

Çakar stated that the gains from the economic program have increased predictability and that the improvement in macroeconomic indicators continues. He noted that the banking sector, with its strong balance sheet structure, advanced technological infrastructure, and skilled human resources, continues to contribute to the country's economy. As of April 2026, the sector's asset size surpassed 50 trillion Turkish Liras, and its loan volume exceeded 25 trillion Turkish Liras. The General Assembly also saw the participation of Treasury and Finance Minister Mehmet Şimşek, Central Bank of the Republic of Turkey (CBRT) Governor Dr. Fatih Karahan, and Banking Regulation and Supervision Agency (BRSA) Chairman Prof. Dr. Şahap Kavcıoğlu, who shared their significant assessments.

The banking sector's robust stance is also highlighted by its support for the real economy. Chairman Çakar stated that the sector would continue to support financing for investment, production, exports, agriculture, and SMEs. Treasury and Finance Minister Mehmet Şimşek also pointed out that the Turkish banking sector has a very strong and resilient structure in terms of capital adequacy ratio, asset quality, and liquidity metrics. BRSA Chairman Şahap Kavcıoğlu underscored that the sector continues to be one of the most important pillars of the Turkish economy, thanks to its strong capital and accumulated risk management experience.

It was noted that the Turkish economy has achieved significant gains in financial stability through the implemented Medium-Term Program (MTP). Çakar stated that the country has reduced its economic fragilities, achieved a more resilient structure against shocks, maintained a downward trend in inflation, strengthened its reserve outlook, and improved its risk premium, which enables more favorable access to funding. CBRT Governor Karahan, on the other hand, drew attention to the fact that fluctuations in global energy markets could affect the inflation outlook and financial conditions.

Expectations for the upcoming period were also discussed at the general assembly. Minister Şimşek predicted that the disinflation process would continue and get back on track, albeit with a delay of a few months. CBRT Governor Karahan stated that they would continue to use all policy tools decisively to maintain price stability and financial stability, emphasizing the continuation of a tight monetary policy stance. BRSA Chairman Kavcıoğlu remarked that the upcoming period would be one of increased responsibility and opportunity for the banking sector, and banks should not only provide funding but also assume a guiding role by prioritizing sound projects and efficient investments.