A seminar titled “TRNC Banking Sector Before and After the Pandemic” was organized by the Banking and Finance Department at the European University of Lefke, Faculty of Economics and Administrative Sciences. Academician Asst. Prof. Dr. Şükrü Umarbeyli attended and discussed the TRNC banking sector by making analyzes from his banking experiences, the world of economy and finance, and TRNC banking data.
Many analyzes of TRNC banks in the current processes were examined by Umarbeyli. Analysis of the ratio situation of banks before and after the pandemic, branch, ATM, personnel changes, banking general balance sheet before and after the pandemic, loan and deposit developments, analysis of NPL NPLs, paid-in capital, current period and previous year profits of banks, change in equity tables, changes in exchange rates, analyzes by loan types, tradesmen loans and processes given through the Central Bank KGF loan guarantee fund and loans given to the market were also discussed.
Umarbeyli: Branching has gradually left its place to digital resources.
In the analyzes made by Umarbeyli, issues such as the situation of the TRNC Banks in the processes before and after the pandemic processes were clarified and up-to-date explanations were made about the banking sector as follows: “First of all, in all analyzes, before and after the pandemic period was analyzed based on the date of March 2020. The ratio of the liquid assets of the TRNC banks to the total assets decreased gradually from 32% to 27% due to the decrease in liquidity due to the credit installments postponed compared to the pre-pandemic period, and gradually increased to 29% by entering the recovery process again after 2021. The Bank’s CAR capital adequacy standard ratios, on the other hand, decreased gradually from the pre-pandemic bands of 17% to 15.2% after the pandemic process, and recovered after 2021 and reached 17.05% levels in the third quarter of 2021. These rates have changed constantly due to the delays made during the pandemic period, the conditions in loan volumes and the effect of exchange rates. In the NPL item, the rate of 5.5% in the pre-pandemic period continued with a slight fluctuation, while the existing loan structuring processes, installment postponement and postponement, as well as the processes of bringing lifeline to the real sector, originating from the credit guarantee fund, artisan loans guaranteed by the KGF Central Bank. However, these rates did not increase in these processes. Afterwards, while the restructurings continued, this rate continued around 5% in August in 2021. While there was a decrease in the number of bank branches and personnel compared to the pre-pandemic period, it was seen from the TRNC Central Bank data that there was an increase in the number of ATMs. While banks have started their digitalization processes, have increased the advantages and customer services over credit cards, pos and ATMs, and emphasized the importance of internet banking, taking into account the pandemic process conditions together with banks and customers, it is now clear that branching is gradually giving way to digital resources. observed”
“The conversion ratio of deposits to loans is 65.88% in the third quarter of 2021”
Umarbeyli stated that deposits are on the rise due to the effect of exchange rates and interest rates during the pandemic processes, and the slowdown in payments and liquidity due to the stretching of existing configuration and check payments. He stated that the conversion rate of deposits to loans was 65.88% in the third quarter of 2021.
Finally, Umarbeyli said, “In the analysis of current and period profits of TRNC Banks, large parallel decreases were observed in the opposite direction before and after the pandemic. The main recovery process was observed after July 2021. In addition, the bank’s own resources continued to increase safely. Equity, which is of great importance for the stability and healthy development of the sector, increased by 7.89 percent compared to the previous quarter and reached the level of 5,511.2 million TL in the third quarter of 2021. The total assets of the banking sector, which was at the level of 56,892.3 million TL at the end of June 2021, increased by 4.41 percent to 59,399.6 million TL at the end of September 2021.