VKF_FRAE_2018_uyg11

46 Section I: Introduction VakıfBank, in line with its vision of being the “Leading Bank of Strong Turkey,” continued to grow in SME Banking in 2018 by expanding its product and service range and launching alternative channels to facilitate SME customer access to financial products. As customer needs rapidly diversify in the sector, VakıfBank has developed appropriate solutions by analyzing SME needs accurately. Performance in 2018 Based on the provisions of the Regulation on Definition, Qualifications and Classification of Small and Medium Size Enterprises, VakıfBank maintained its support of SME customers in 2018 by extending cash loans amounting TL 59.4 billion. During the year, VakıfBank continued to develop tailor-made and innovative products to meet the specific needs of SME customers. 2018 has been the year when the government continued to extend support to SMEs and craftsmen via the banking sector. VakıfBank played an active role in delivering government support to SMEs and craftsmen. As a part of these initiatives, the government provided support to the Credit Guarantee Fund (CGF), significantly enlarging its capacity to offer collaterals; in turn, CGF backing made it easier for banks to provide financing to SMEs. As a bank that is always on the side of SMEs and the real economy, VakıfBank allocated loans with CGF collaterals of more than TL 26 billion, making VakıfBank as one of the leading banks in the allocation of CGF-backed loans. Many loan products with CGF collateral were designed to meet the financial needs of farmers, craftsmen, women entrepreneurs, exporters and even non-SME businesses. As part of an agreement signed between Turkish banks, including VakıfBank, and Turkish Union of Chambers and Commodity Exchanges (TOBB), two “Breathing Loan” campaigns were conducted in 2018. Under this agreement, VakıfBank became the strength on the side of SMEs by extending about TL 1.4 billion with a monthly interest rate of 0.99% and TL 350 million with a monthly interest rate of 1.85% to SME customers. To support the tourism sector, VakıfBank launched the initiative Association of Turkish Travel Agencies (TÜRSAB) Support Credits. Continuing to be the strength on the side of the tourism sector, the Bank offered CGF-backed Turkish lira and foreign currency resources to travel agencies under TÜRSAB. Upon completion of the project to transfer all letter of guarantee procedures over to the Electronic Letter of Guarantee Platform (ETMP) run by the Credit Bureau (KKB), VakıfBank took justified pride of being the first bank in Turkey to extend an electronic letter of guarantee. In line with its sustainability policy, VakıfBank provided support to Turkish productions with the Machine Purchase Loan: the Strength on the Side of Manufacturers, which was designed to finance manufacturing companies’ machinery purchases. VakıfBank has extended cost-effective loans provided from European Investment Bank, European Bank for Reconstruction and Development, World Bank and the French Development Agency to SMEs. Thanks to the Women Entrepreneurs Support Package, which was created with funds provided by TurWIB programme from EBRD, women entrepreneurs were offered enterprise, workplace acquisition and export loans. Under the Turkey Sustainable Energy Finance Facility (TurSEFF III), VakıfBank provided funding for resource efficiency and renewable energy investments of commercial enterprises, municipalities and their subsidiaries. SME Banking In 2018, VakıfBank extended cash loans amounting TL 59.4 billion to SMEs and continued to be the strength on the side of SME customers throughout the year. 1 million SME Customers Over VakıfBank is on your side with innovative products suited to meet SME needs... REVIEW OF OPERATIONS IN 2018