Turkey to establish credit rating agency in 2018

Turkey has plans to establish a national credit rating agency in 2018, the country's banking watchdog chief said.

Speaking to reporters, Mehmet Ali Akben, the head of the Banking Regulation and Supervision Agency (BDDK), said the credit rating agency will most likely be established by Turkish banks.

"The exact date is yet to be determined, but we want to make it a reality sometime this year. We're aiming to establish it this year," he said.

"The agency will compile all of the necessary information needed to establish a working agency within a few years," he said. He said the agency may reduce banks' risk to zero and will help with their borrowing costs.

"We have found that a national rating agency, which will be used by our banks, is a necessary," he underlined.

"The Turkish Industrial Development Bank [TSKB] has created a study group for the creation of such an agency," he added.

Independent rating agencies are used predominately for computation of capital markets' debt instruments and exports, as well as calculating a country's risks, he said, adding, "It's obvious that we have had problems trusting these agencies."