Alternatifbank Touts Partnership Amid Commercial Bank Of Qatar’s Acquisition
News: Alternatifbank has outlined what it anticipates will be a period of cooperation following Commercial Bank of Qatar ' s acquisition of a majority stake in the Turkish lender, according to a press release. Alternatifbank C hairman Tuncay Ozilhan said that the two banks will share technology, engage in regional cooperation and look at opportunities to expand investment between Turkey and Qatar. Ozilhan added that he expects Alternatifbank ' s growth to accelerate domestically on the back of the partnership.
BMI View: The Turkish banking sector will continue to be a regional outperformer in terms of growth and profitability in coming quarters. However, an overreliance on external funding and FX denominated lending will make the current pace of loan growth unsustainable as foreign capital becomes more expensive in 2014. Furthermore, a depreciated lira and weaker domestic economic imply a mild deterioration in asset quality and tighter credit conditions.