Basic HTML Version
16
Growth performance will continue in
2014
The Fed’s statement in May was the turning
point in terms of macroeconomics and
financial markets. At its meeting, the Fed gave
the signal for a decrease in its US$ 85 billion
asset purchase program. It decided to make
a US$ 10 billion cut in the asset purchase
program in January and then again in February
2014. The Fed, despite the reduction decision,
stated that the process will be carried out
cautiously so as not to disrupt the markets. In
line with this decision, I believe I would not
be wrong in saying that there will not be any
deterioration in international capital inflows; in
other words, there will not be any setback of
global liquidity toward developing countries.
Along with these developments in the
global economy, the Turkish economy had a
balanced performance in the first nine months
of 2013 and grew by 4% in real terms over
the same period last year. In my personal
opinion, the increased growth performance
of the Turkish economy in 2013 will also
Dear Stakeholders,
2013 was a year of higher global growth
compared to 2012. While the growth
performance of the United States was well
above expectations especially in the third
quarter of the year, data from the Euro
zone pointed to a recovery, albeit a limited
one. Last year, China’s economy fell below
expectations (7.7%) and showed the weakest
growth performance of the last 12 years,
including 2012.
Another main discussion in 2013 involved
the policies of central banks. Central banks
of developed countries continued with low
interest rate policies, while the Fed and the
Bank of Japan (BOJ) did not change their
interest rates; the European Central Bank (ECB)
decreased the policy interest rate by 25 bps
to 0.25% level as decided at its November
meeting. Then again, these central banks
continued to provide support to expansionary
monetary policies with primary monetary
policy tools other than interest rates.
continue into 2014, given that there will not
be a significant deterioration in international
capital inflow in the short term.
Diversification of export countries, to
overcome the negative effects that global
distress may cause Turkey, had a positive
impact on the foreign trade deficit. I expect
the gradual recovery of the trade deficit to
continue thanks to the positive trend in oil
prices, normalizing gold import levels since
May and appropriate policy decisions by
regulatory and supervisory authorities.
Tightening policies for financial stability
The Central Bank of Turkey (CBT) adopted
a moderate tightening policy, using both
interest rate as well as primary monetary
tools during this period. The CBT increased
reserve requirement ratios and reserve option
coefficients until June 2013. In July, the CBT
raised the upper band of the interest rate
corridor by 125 basis points to 7.75%. I think
that depending on the direction of foreign
currency exchange and interest rates, the CBT
might continue to follow a tightening policy
toward providing financial and price stability
in 2014.
Another important development in 2013
concerned the measures taken by the Banking
Regulation and Supervision Agency (BRSA)
with regard to loans. As of October 2013, with
relevant regulation, BRSA reduced overall
reserve ratios applied to the cash and non-
cash export credits and cash loans to SMEs,
while increasing the general reserve ratio
applied to the consumer loans. On the same
date, another decree issued by the BRSA
increased the minimum payment amounts
of credit cards while credit card limits were
restricted.
MESSAGE FROM THE CEO
In 2013, we took part in projects that contribute
to the development of the country and continued
to support SMEs, the driving force of the Turkish
economy.
SUPPORTING
OUR COUNTRY
UNDER ALL
CIRCUMSTANCES
I
I
Moving forward by combining an
innovative spirit with a strong
past, VakıfBank continues to work
to create a bright future for clients
as it supports investors who have
contributed to the development
of Turkey since the 1970s. In
the economically and politically
unstable environment of that
period, VakıfBank led the way for
the expansion of investments, for
the development and growth of
the nation’s industry.