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İŞBANK
ANNUAL REPORT 2014
18
BANKING
SECTOR
Developments in the Banking Sector
in 2014
Slowdown in loan volume growth
The banking sector continued to achieve
stable growth in 2014 with increasing
asset size, rising employee numbers and
expanding branch networks. The total
assets of the banking sector grew by 15.5%
on a year-on-year basis, to TL 1,890
(*)
billion by the end of 2014.
The moderate course of domestic demand
in 2014 was the main factor that pressured
loan volume growth. Measures taken by the
BRSA led to slower growth in retail loans in
particular. In addition, the CBRT’s decision to
raise interest rates in January 2014 resulted
in an increase in the sector’s funding costs
in the first quarter of the year. However,
the interest rate cuts carried out in the
following periods paved the way for sector-
wide decreases in funding costs again.
Despite fluctuations in international markets, the banking
sector did not experience difficulties in obtaining funds
from abroad in 2014.
(*)
Calculated using monthly sector data published by the Banking Regulation and Supervision Agency. Interest accruals and rediscounts are not taken into
account. Participation banks are excluded from sector numbers.
15.5%
Total asset volume of the banking
sector increased by 15.5% year-
on-year, to TL 1,890
(*)
billion.
16.4%
The sector’s capital adequacy
ratio increased from 15.3%
(*)
at end-2013 to 16.4%
(*)
as of
December 2014.
Source: BRSA Monthly Bulletin
(*)
Deposits and Loans in 2014
(Change Compared to 2013) (%)
0
5
10
15
20
25
TL Deposits
FC Deposits
Loans
-5
January
April
November
September
February
June
May
October
March
August
July
December