10 İşbank
Annual Report 2015
Esteemed Shareholders,
2015 will be remembered as a year in
which the questionmarks with regard
to the global economy became more
pronounced.
The pace of global economic expansion
was relatively weak during the year. This
was largely due to two developments in
particular: The slowdown in emerging
markets, notably in China, and the negative
impact of falling commodity prices on
commodity-producing countries. After a
period of nine years, the US Central Bank
(Fed) finally decided to raise interest rates
in the last month of 2015. The Fed’s signal
to hike rates gradually and moderately in
the coming period somewhat relieved the
markets.
In the Eurozone and Japan, where economic
activity has still not reached desired levels,
solutions based on expansionary monetary
policies continue to be sought. Over the
past year, steps in this direction were taken
by these countries.
In 2016, it is expected that a clearer
divergence will emerge in the monetary
policies of central banks of advanced
economies and the US Dollar will remain on
a strengthening trend. Meanwhile, global
capital flows are forecasted to be shaped
Chairman’s
Message
İşbank always takes
a leading role with its
products and services
that add high value
in every phase of
economic and business
activity. The Bank
supports Turkish
entrepreneurs abroad
as well, primarily in
countries in Turkey’s
close neighbourhood.
in parallel with the pace of the decision to
increase interest rates in the US. A focus on
expansionary monetary policies by central
banks of other developed countries could
remedy – to some extent – the Fed-induced
tightened global liquidity. Moreover,
a possible shrinking in global liquidity
together with increased geopolitical risks
are projected to exert more pressure
especially on developing countries that are
dependent on external financing.
In 2015, the Turkish economy
experienced a domestic demand-
driven and moderate growth.
2015 was a year in which the economy was
not in the spotlight of the overall agenda
for Turkey; due to the political and regional
developments. Despite that, Turkey’s
economy was able to showmoderate
expansion. Domestic demand was the main
driver of this growth during the period.
Contraction in the foreign trade deficit on
the back of falling energy prices led to a
smaller current account deficit, one of the
main fragilities of the Turkish economy.
In case the current low level in oil prices
becomes permanent, it is expected to
continue positively impacting the Turkey’s
economy in 2016. When taking into account
the projections that the Fed’s interest rate
hikes will be gradual, a focus on structural
