14:23 - 19.08.2026

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August 19, Fineko/abc.az. According to a Bloomberg analysis, the BIST Banking Index has dropped 13% since late June, while the BIST Industrial Index has gained nearly 10%. This divergence has dragged the performance of banks relative to industrial companies to its lowest level since March 2024.

Analysts attribute the main pressure on banks to elevated interest rates and prolonged high-rate expectations. Middle East conflicts and rising oil prices pushed inflation risks higher, prompting the Central Bank to tighten monetary policy and raise the effective funding rate from 37% in March to 40%.

Market Commentary:

• BofA Securities: Downgraded ratings for Turkish private banks, citing persistent inflation and a slower-than-expected easing cycle.

• Perform Portföy: Highlighted that high funding costs weakened second-quarter optimism, though it expects banking shares to outperform in the remainder of the year.