Moody's says central bank governor removal credit negative for Turkish banks' funding

ISTANBUL: Credit rating agency Moody's said on Thursday that the removal of the Turkish central bank governor is credit negative for banks' funding as the move hurt investor confidence, constraining their access to market funding.

"Without central bank credibility, (banks') market access is likely to again be costlier and limited to short-term syndications," it said in a note.

Moody's also said risks are somewhat mitigated as Turkish banks have adequate foreign-currency liquidity and have generally reduced their reliance on market funding since the currency crisis in 2018.