ISTANBUL
International credit rating agency Moody's said Thursday Turkey's banking system outlook remained stable.
The agency said in a press release that moderate economic growth and improving sovereign financial strength will create supportive operating conditions for banks, despite downside risks from the euro area crisis, volatile markets and investor risk aversion.
Moody's said it expects net profit margins to weaken over the next 12-18 months, as banks confront an environment of moderating growth, heightened competition, and rising provisioning costs.
It said credit expansion is expected to be moderate at around 12-15 percent in 2013, adding it expected Turkey's growth rate to stand at 3.8 percent in 2013.
