Turkey’s state banks likely to follow the central bank

Experts expect Turkey’s state banks to slash interest rates by roughly 200 basis points on Monday, following a monstrous rate cut implemented by the country’s central bank last week. 

It is expected that the three major public banks, Zirat Bank, Halkbank, and Vakif Bank will slash their rates particularly on corporate, personal, mortgage, and other loans. 

The sources revealed this to Businesshala on the condition of anonymity, adding that they are unauthorized to reveal the details of the decision since the banks are still in discussions on the planned moves.

Businesshala also sighted an email from a bank to some of its employees on Friday, notifying them of a plan to cut costs by about 200 basis points.

Another senior executive argued that state banks can be expected to cut rates in a bid to match the central bank’s repo rate on Monday.