The banking data for February confirms that the Turkish banking sector has a very healthy outlook, Treasury and Finance Minister Nureddin Nebati said Sunday.

Nebati, in a social media post, evaluated the February banking data announced by the Banking Regulation and Supervision Agency (BDDK).

Pointing out that the said data confirms that the banking sector has a very healthy outlook with its strong capital structure, high asset quality and profitability ratios, Nebati said: "The capital adequacy ratio of the sector is 17.1% as of February 2023, which is well above the legal minimum limit of 8% and the target ratio of 12%."

"The high capital adequacy ratio shows that our banking sector has a significant amount of capital buffer as a precaution against possible risks."

"A second point is that the NPL ratio of the sector was realized at a shallow level of 1.9% as of February 2023. This underlines the healthy asset quality of the sector," Nebati said.

Nebati emphasized that the banking sector has achieved this healthy appearance under the difficult conditions the financial system has fallen into due to the "self-evident" tight monetary policies implemented recently in global markets.

In addition, Nebati stated that the integrated structure of the banking sector with global financial markets, qualified human resources and pioneering actions in technological applications have brought the country to the fore in this field, adding, "Despite the current challenging global conditions, which the whole world is going through, the healthy development that our banking sector has achieved is behind it."

The net profit of Turkish banks reached TL 65.6 billion ($3.48 billion) in the January-February period, with a 68% rise compared to last year, the country’s banking watchdog announced Wednesday.