Turkey’s banks were in buoyant mood in early March. They had largely recovered from the 2018 currency crisis, which hit them hard and suppressed gross domestic product (GDP) growth to 0.2% in 2019, and the International Monetary Fund was forecasting 3% GDP growth in 2020.
Economic growth was being assisted by an expansionary fiscal policy, a cut in interest rates in the second half of 2019, increased credit provision by state-owned banks and more favourable external financing conditions. Meanwhile, the country’s banks – some of them among the world’s most technologically advanced – were swiftly progressing with their digital transformation plans.
