Bank

Turks’ soaring debt levels are beginning to set off alarm bells, with the number of consumers having difficulty paying credit card debts jumping by more than 30 percent in June compared to the same month last year.

According to figures compiled by the Turkish Banks Association (TBB) Risk Center, nearly 186,000 Turks did not pay their loan or credit card debts to banks in June.

The overall uncertainty regarding how Greek banks will emerge from October’s stress tests to be conducted on all EU banks has fueled a summer of distress and fluctuation for local banking stocks.

Greece’s banks are on sturdy capital ground, and if any capital injections are needed, the sum should not exceed 3.5 billion euros, Morgan Stanley notes in a new report.

Morgan Stanley analysts also stated that recent share price corrections in the local banking sector have created investment opportunities.

Turkey’s banking watchdog has announced a draft regulation that immensely expands limitations on the commissions and fees that can be charged by banks.

The Banking Regulation and Supervision Agency (BDDK) aims to decrease the number of services permitted to charge fees on 60 services to 20, according to the draft regulation model unveiled on Aug. 21.

 Sector's denial of any capital injection needs receives backing from positive report delivered by JPMorgan

Greek banking sources are denying reports that the sector will need a new round of increased capital support, announcing that no such news has been delivered to them by the European Central Bank.

Turkish banks’ rapid credit growth and higher external debt increases downside risks in the case of extremely stressed market conditions, Fitch Ratings has said in its latest statement over risks looming over the country’s economy.

Only a small number of citizens have responded to a call by the Finance Ministry to designate a bank account where deposits up to 1,500 euros cannot be confiscated against arrears to the state.

An analysis of the latest developments in the case of Bulgaria’s Corporate Commercial Bank by Frances Coppola has been published on the website of Forbes magazine.

The Turkish Banking Association expects profits in the banking sector this year to be at around the same levels as last year, General Secretary Ekrem Keskin told reporters on Aug. 19.

Turkey’s banks had a total net profit of 24.73 billion Turkish Liras ($11.42 billion) at the end of 2013, up 5.1 percent on the previous year.

Banks will return 2.861 billion euros (2 billion pounds) in long-term loans to the European Central Bank next week after the ECB started to charge for holding banks' excess cash overnight and promised more long-term loans.