The governor of the Turkish central bank met with the chairperson and the board of directors of the top banking body for a regular meeting on Monday, according to a written statement.
The Central Bank of the Republic of Türkiye (CBRT) Governor Fatih Karahan met with the chairperson of the board of directors of the Banks Association of Türkiye (TBB), Alpaslan Çakar, and the members of the board of directors of TBB at the Istanbul Financial Center (IFC) campus of the CBRT within the scope of regular meetings held every three months, the TBB said.
The meeting discussed the latest developments in the global economy and the domestic macroeconomic outlook, the statement read.
"While the reflections of the recent geopolitical risks on the global markets were evaluated, the contribution of the work carried out in cooperation with the banking sector to the maintenance of financial stability was emphasized," it further said.
At the end of the meeting, Karahan and Çakar expressed their satisfaction with the close cooperation between the central bank and the banking sector. It was stated that the meeting was "extremely productive and constructive in a way that would support the healthy and sustainable growth of the sector."
Earlier during the day, Treasury and Finance Minister Mehmet Şimşek said that they are analyzing the multidimensional effects of increasing geopolitical tensions on the Turkish economy and evaluating possible scenarios in detail.
"Our institutions are ready to take the necessary measures quickly and decisively, in strong coordination, to maintain stability in the markets and the healthy functioning of our economy," Şimşek said in a social media post.
Concerns have mounted globally about the potential closure of a key oil route by Iran, as a response to the weekend's attack by the U.S. on its nuclear sites.
World shares slipped on Monday and oil prices rose toward five-month highs before retracing gains as investors awaited possible retaliation from Iran following U.S. attacks, with knock-on risks to global trade and inflation.
"Any sign of Iranian retaliation or threat to the Strait of Hormuz could quickly shift sentiment and force markets to reprice geopolitical risk more aggressively," said Charu Chanana, chief investment strategist at Saxo.
The Strait of Hormuz is only about 33 kilometers (21 miles) wide at its narrowest point, and around a quarter of global oil trade and 20% of liquefied natural gas (LNG) supplies pass through it.
