Call for 'credit card' action from Garanti Bank
The fifth 'Sustainable Future in Exports' meeting organized by Garanti BBVA was held in Adana. Garanti BBVA CEO Recep Baştuğ made assessments regarding the economy. Baştuğ also stated that steps need to be taken regarding credit cards to cool down consumption.
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Garanti BBVA CEO Recep Baştuğ stated that while loans increased by 50 percent last year, credit card usage saw increases of up to three times that amount, and emphasized that steps must be taken regarding credit cards to cool down consumption.
Stating that inflation will fall to 45 percent by the end of the year due to the base effect, Baştuğ expressed that the real struggle will begin after that.
"WE BELIEVE SOMETHING NEEDS TO BE DONE TO CURB IT"
Reminding that banks have a 2 percent growth limit on individual loans due to monetary tightening policies, Baştuğ said, "If banks exceed this limit on individual loans, they pay serious penalties, so they take care not to exceed it. Even if credit demand increases this year, it will be suppressed by higher interest rates on the individual side. A similar situation exists for the corporate side, where there are also certain limits. Considering that average inflation will end at the 54-55 percent level, I think we will complete the year with credit growth well below that. Everyone will be affected by this. However, we still think and expect that something needs to be done to curb the growth related to credit cards."