AK Party and DEM Party Delegations Discuss 'Terror-Free Turkey' Process: What Are Market Expectations?

Delegations from the AK Party and DEM Party held discussions in the Turkish Grand National Assembly regarding the 'Terror-Free Turkey' process. The AK Party delegation, led by Abdullah Güler, Efkan Ala, and Ömer Çelik, met with DEM Party representatives to discuss the economic and political implications of the anti-terror strategy. Markets are now assessing potential impacts on net interest margins (NIM) and capital adequacy ratios (CAR), with expectations ranging between 0.5-1.5%.

The 'Terror-Free Turkey' Process and Economic Risks

■Possible restrictions on capital flows

■Concerns over investment security

■Short-term volatility in exchange rates and stock indices

Market Reactions

■BIST 100 and XU100 indices fluctuated by 0.2-0.8%

■USD/TRY exchange rate moved within 0.1-0.3%

■Credit market interest rates increased by 0.50-1.00 points

Markets should approach this situation with caution. The economic dimensions of the 'Terror-Free Turkey' process are still emerging, but potential innovations in digital banking and fintech are on the horizon. If capital adequacy ratios (CAR) remain at 15-20%, banks may face negative impacts on their net interest margins (NIM). Experts predict these effects could persist until early 2027.