Turkish private lender Akbank has announced plans to invest $200 million in technology in 2024, as CEO Kaan Gür announced at a news conference on Tuesday. This investment is part of a larger $600 million budget earmarked for technology over the next three years. Gür also mentioned that changes to regulations in early February have alleviated cost pressures for banks, increasing the appetite for loans.
According to a Reuters report, Gür noted that a budget of $600 million had been earmarked for technology investment in the next three years. Changes to regulations in early February had eased cost pressures for banks and this will increase the appetite for loans somewhat, he said.
During the news conference, Gür stated that the Central Bank of Republic of Türkiye (CBRT) Governor Fatih Karahan reaffirmed the decline in the volume of KKM accounts observed in the past months, while Turkish lira deposits were building up. He said that in the last five months, Turkish lira deposits increased by TL 2.4 trillion, while KKM volume decreased by TL 910 billion.
In addition, Gür mentioned that a portion of loan requests is starting to switch from Turkish lira to foreign currency. He added that interest rates have reached a level that will support conversions from FX-protected accounts (KKM) to Turkish lira ones. The Turkish central bank began rolling back the KKM scheme last August to boost the share of lira deposits in the banking system and has been announcing measures to dissuade companies and individuals from renewing these accounts.
Lastly, Gür noted that CBRT Governor Karahan signaled during their last policy meeting that the tightening cycle was complete after delivering a series of interest rate hikes that lifted the policy rate from 8.5% to its current 45%. The bank orchestrated a shift toward more conventional policymaking last year.