(Bloomberg) -- Turkish Finance Minister Mehmet Simsek said the country’s industry would have a capital adequacy ratio of about 17 percent if the country implemented the Basel Committee on Banking Supervision’s new rules today.
“The banking sector is well capitalized. If anything it is excessively capitalized,” Simsek said at the Bloomberg Businessweek European Leadership Forum in London on Nov. 23. “We are not deleveraging. If anything the banking sector needs to leverage.”
Group of 20 leaders earlier this month endorsed the new Basel Committee rules, known as Basel III, which require lenders to have common equity equal to at least 7 percent of assets. Banks have as long as eight years to comply with the rules.
Turkey’s lenders are strong enough to “remain supportive of growth,” Simsek said. The industry’s return on equity averaged more than 20 percent a year for the last three years, he said.