An expected capital increase will help Türkiye's Ziraat Bank to spearhead President Tayyip Erdogan's drive to boost economic growth and tackle chronic current account deficits this year, said the head of the country's largest lender, APA reports citing Reuters.
Chief Executive Alpaslan Cakar, who is also chairman of the Turkish Banks Association, said state banks like Ziraat were the driving force in the economy in recent years and would carry on even as they seek to pay dividends in 2023.
He downplayed concerns raised by private-sector counterparts over risks posed by a flurry of bond-holding regulations, and he said credit would continue to boost sectors like manufacturing and agriculture.
Erdogan introduced a "new economic model" in 2021 that prioritises growth, investment and exports and is aimed at flipping Türkiye's persistent trade deficits, a major component of the current account. The model relies on targeted loans and low interest rates, in line with his unorthodox view that cutting rates decreases inflation.
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