The Turkish banking sector's sound, healthy structure continues at full strength, the Banking Regulation and Supervision Agency (BDDK) said on Thursday.
The sector's current capital structure is fully capable of withstanding asset quality-driven risks, the banking watchdog said in a statement.
The BDDK projected that in 2019 the capital adequacy ratio will drop to 15.5 percent while the non-performing loans (NPL) ratio will reach 6 percent.
It underlined that following the work on its financial structure, the calculated capital adequacy ratio is well above the minimum limit of Basel III practices.
The sector's profitability performance also supports capital adequacy through internal capital production, the statement added.