Turkish private lender Akbank has announced plans to invest $200 million in technology by 2024, as part of a larger $600 million budget earmarked for this purpose over the next three years. This investment will help the bank to improve its operations and increase efficiency.
According to a Reuters report, CEO Kaan Gür stated that changes to regulations in early February have alleviated cost pressures for banks, which will increase their appetite for loans. Gür also mentioned that a portion of loan requests is starting to switch from Turkish lira to foreign currency. Interest rates have reached a level that will support conversions from FX-protected accounts (KKM) to Turkish lira ones, he added.
During the news conference, Gür stated that the Central Bank of Republic of Türkiye (CBRT) Governor Fatih Karahan reaffirmed the decline in the volume of KKM accounts observed in the past months, while Turkish lira deposits were building up. In the last five months, Turkish lira deposits increased by TL 2.4 trillion, while KKM volume decreased by TL 910 billion. Lastly, the central bank signaled that the tightening cycle was complete in its last policy meeting after delivering a series of interest rate hikes that lifted the policy rate from 8.5% to 45%. The bank orchestrated a shift toward more conventional policymaking last year.