Minister Nebati: Banking has significant capital buffer

Minister of Treasury and Finance Nureddin Nebati said, “Our banking sector has a significant amount of capital buffer against potential risks.” Minister of Treasury and Finance Nureddin Nebati stated that the banking data for February confirms that the sector has an extremely healthy outlook with its strong capital structure, high asset quality and profitability ratios, and said, “Its high capital adequacy shows that our banking sector has a significant amount of capital buffer as a precaution against potential risks.” In a post on his social media account, Nebati evaluated the February banking data announced by the Banking Regulation and Supervision Agency (BDDK). Noting that the data in question confirms that the banking sector has an extremely healthy outlook with its strong capital structure, high asset quality and profitability rates, Nebati noted the following: "The capital adequacy ratio of the sector is 17.1 percent as of February 2023, which is well above the legal minimum limit of 8 percent and the target rate of 12 percent. Its high capital adequacy shows that our banking sector has a significant amount of capital buffer as a precaution against possible risks. A second issue is that the non-performing receivables ratio of the sector was realized at a very low level of 1.9 percent as of February 2023. This situation underlines the healthy asset quality of the sector."