GCC banks are at risk in Turkiye, Fitch says
Ratings agency, Fitch, announced on Friday that Gulf Banks with Turkish subsidiaries reached net losses of roughly $950 million in the first half of 2022, Fitch rating reports
Erin
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According to the report, Turkiye creates risk for GCC banks' capital positions due to currency translation losses from the lira depreciation.
Fitch also warned that banks in the Gulf Cooperation Council — that is Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates — with Turkish subsidiaries have to adopt hyperinflation in Turkiye as cumulative inflation in Turkiye over 100 per cent in the last three years.
Last August, Turkiye troubled markets by lowering its key interest rate despite inflation at nearly 80 per cent.
Source: Middle East Monitor under CC BY-NC-SA 4.0
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