Financial Services Confidence Index Rises 2.1 Points to 155.0 in July 2026

The Financial Services Confidence Index (FSCI) climbed 2.1 points in July 2026, reaching 155.0, driven by an improving employment climate and stronger forward‑looking demand expectations.

Employment Upswing and Demand Dynamics

■The share of respondents reporting improved job conditions over the past three months strengthened.

■Perceptions of rising service demand weakened, while expectations of higher demand in the next three months gained traction.

■Positive employment growth reports and forward‑looking hiring expectations diminished.

■Profitability outlooks strengthened, indicating confidence in future earnings.

Sub‑Sector Performance Gaps

■Financial services activities: Confidence index rose by 3.0 points.

■Insurance, reinsurance and pension funds: Saw the largest jump with a 8.9‑point increase.

■Support activities for financial services and insurance: Recorded a 0.4‑point decline.

Market and Policy Implications

■The confidence lift suggests a modest revival in credit demand and may signal a stabilization of commercial credit growth.

■Macro‑prudential measures could be easing pressure on the banking sector, potentially slowing the tightening of SME loan supply.

■Sectoral variances highlight that insurance and pension funds benefit from high liquidity and low‑risk positioning, whereas ancillary services face a rebalancing phase.

Kerem Tufan – Director of Commercial Loans and Central Bank Policies: “The rise in the FSCI underscores the financial services sector’s growing resilience amid macro‑economic uncertainties. The pronounced confidence boost in insurance and pension funds points to a robust liquidity stance, while the dip in support activities signals a sector‑wide recalibration. This calls for tighter credit quality controls and a cautious risk‑management approach as banks navigate the evolving landscape.”