Decline in confidence in financial services

The Central Bank of the Republic of Turkey (CBRT) has announced the financial services statistics and the Financial Services Confidence Index (FSCI) for January.

The results of the Financial Services Survey for January 2024 were obtained and evaluated by weighting and aggregating the responses of 142 institutions operating in the financial sector.

AFFECTED BY A DOWNWARD TREND

According to the CBRT's statement, the FSCI decreased by 20.6 points in January 2024 compared to the previous month, settling at 140.8. When examining the diffusion indices of the survey questions that make up the index, it was observed that all sub-indices—including business situation over the last three months, demand for services over the last three months, and expectations for demand for services over the next three months—affected the FSCI in a downward direction.

According to evaluations regarding business situation and demand for services, it was observed that assessments indicating an improvement in the business situation over the last three months weakened compared to the previous month. Evaluations indicating an increase in demand for services over the last three months, as well as expectations for an increase in demand for services over the next three months, were also seen to have weakened.

According to the CBRT's statement, regarding evaluations of competitiveness, it was observed that assessments indicating an improvement in competitiveness in domestic markets over the last three months, as well as expectations for improvement over the next three months, have strengthened.

DECLINE ALSO IN AUXILIARY ACTIVITIES SECTORS

The statement noted, "Regarding competitiveness in foreign markets, it is observed that assessments of improvement over the last three months have weakened in foreign markets both within and outside the EU. Expectations for improvement over the next three months, however, are observed to have strengthened slightly in foreign markets within the EU, while remaining the same in foreign markets outside the EU."

When confidence indices in the "Financial and Insurance Activities" sector were evaluated by sub-sectors, it was recorded that there were decreases of 21.4, 2.1, and 32.3 points, respectively, in the "Financial Service Activities (except insurance and pension funding)," "Insurance, Reinsurance and Pension Funding (except compulsory social security)," and "Activities Auxiliary to Financial Service and Insurance Activities" sectors compared to the previous month.

News Source: 12punto