'Turkish banks operate in line with regulations'

By Muhammed Ali Gurtas

ANKARA (AA) - Turkish banks operate in line with banking regulations, commercial practices and agreements, the president of the Turkish Banking Association (TBB) said Wednesday.

In a statement, Huseyin Aydin said investors should maintain confidence in the Turkish lira and continue their business in domestic and foreign markets in a healthy manner.

International media reports have alleged over the past few days that Turkish banks were not providing lira liquidity to foreign banks and swap rates consequently surged in international markets.

"These reports do not reflect reality," Aydin said. "Lenders in Turkey are not a source of liquidity."

Pointing to the availability and cost of the local currency, he said the Central Bank of Turkey's tight monetary policy for reducing inflation and achieving financial stability is the most determinant factor.

Aydin noted that the amount and type of a transaction is a commercial decision for banks.

He also said the nature, quantity and price of transactions may vary due to banks' portfolios, risk approach and management policy.