Turkish State Banks Are Lending Along Party Lines, EBRD Says
- EBRD says state-run lenders favor areas that back ruling party
- ‘Misallocation’ of credit may outweigh potential gains: EBRD
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Turkey’s state-owned banks could be misallocating their resources by lending along party-political lines, according to the European Bank for Reconstruction and Development.
Government-controlled institutions appear to be increasing credit to areas that support the ruling party, the EBRD said in a report released Tuesday. Conversely, state-run lenders are reducing assistance where regional authorities hail from the opposition, it said.