Turkey’s Simsek to meet banking sector amid speculation of policy reversals

ANKARA, June 8 (Reuters) – Turkey’s recently appointed Finance Minister Mehmet Simsek is scheduled to convene a meeting next week with top banking executives, banking sources said.

According to information from bankers close to the matter, the meeting is expected to be on Thursday next week, between Simsek and the member banks of the Banks Association of Turkey (TBB).

“This is a meeting that should naturally be held,” said a senior banker, noting that similar meetings had taken place after the appointment of treasury and related ministers before.

The Treasury and the TBB declined to comment.

Two sources stated that a general evaluation of the banking sector and current economic challenges are expected to be discussed with the incoming minister.

Simsek, a former strategist at Merrill Lynch, returned to President Tayyip Erdogan’s cabinet following the president’s re-election in the May 28 runoff vote.

Investors have shown enthusiasm for Simsek’s appointment due to an anticipated shift towards more conventional economic policies in Turkey, signalling a U-turn in Erdogan’s policies.

Banking sector representatives have frequently expressed complaints about the unorthodox economic model applied by Erdogan’s government for the last two years.

Following his appointment, Simsek said that economic policy needed to return to “rational” ground and that there were “no quick fixes” for policy.

Reporting by Ebru Tuncay and Jonathan Spicer; Writing by Ece Toksabay; Editing by Hugh Lawson

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