Public Banks: One More Leak to Plug
To date we have posted two articles specifically focused on differentiates between public and private banks. As they have been in many developing economies ─particularly in India─, banks controlled by the government are milked to the bone with being forced to provide lending to sustain economic growth at the desired levels. This is also the case in Turkey (read Turkish Banks: Differentiating Rapidly, Loan Growth: Where do the Expenses Come From?).
Above we present loans-to-deposit ratios for private and...
Prospects of A Liquidity Shortfall
In a country where average maturity of deposits is very short, liquidity risk management for financial instructions is of paramount importance. Most particularly, in Turkey, a country seeking high growth where the consumption is the engine of the economy, the liquidity balance become even more important.
In a previous post we expostulated the deterioration in liquidity adequacy ratios in Turkish banks and warned that banks would be crippled by a liquidity crunch. With the loans to deposit...