Bank of China President Resigns

FILE PHOTO: Paramilitary police officers stand guard in front of the headquarters of the People's Bank of China, the central bank (PBOC), in Beijing, China September 30, 2022. REUTERS/Tingshu Wang/File Photo
FILE PHOTO: Paramilitary police officers stand guard in front of the headquarters of the People's Bank of China, the central bank (PBOC), in Beijing, China September 30, 2022. REUTERS/Tingshu Wang/File Photo
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Bank of China President Resigns

FILE PHOTO: Paramilitary police officers stand guard in front of the headquarters of the People's Bank of China, the central bank (PBOC), in Beijing, China September 30, 2022. REUTERS/Tingshu Wang/File Photo
FILE PHOTO: Paramilitary police officers stand guard in front of the headquarters of the People's Bank of China, the central bank (PBOC), in Beijing, China September 30, 2022. REUTERS/Tingshu Wang/File Photo

Bank of China Vice Chairman and President Liu Jin resigned for personal reasons effective on Sunday, the bank said.
The state-owned lender said its board had approved Chairman Ge Haijiao to serve as acting president, according to a filing released by the bank on Sunday.
Bank of China (BOC) did not immediately reply to a Reuters request for comment. Liu could not be immediately reached for comment.
Liu, born in 1967, was named as president of the bank in April 2021. He previously served as president of China Everbright Bank from January 2020 to March 2021 and vice president of policy lender China Development Bank from September 2018 to November 2019.
Liu's departure follows that of former BOC Chairman Liu Liange, who stepped down in March 2023 and was placed under investigation by the anti-graft watchdog before pleading guilty to taking bribes worth more than 121 million yuan, as China intensified its anti-corruption campaign in the $66 trillion financial industry.
Liu Jin has also worked for state-owned Industrial and Commercial Bank of China, the world's largest lender by assets, as head of investment banking department and head of Jiangsu provincial branch.



Turkish Isbank CEO Sees Challenges ahead, November Rate Cut

A Turkish flag with the Bosphorus Bridge in the background, flies on a passenger ferry in Istanbul, Türkiye September 30, 2020. (Reuters)
A Turkish flag with the Bosphorus Bridge in the background, flies on a passenger ferry in Istanbul, Türkiye September 30, 2020. (Reuters)
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Turkish Isbank CEO Sees Challenges ahead, November Rate Cut

A Turkish flag with the Bosphorus Bridge in the background, flies on a passenger ferry in Istanbul, Türkiye September 30, 2020. (Reuters)
A Turkish flag with the Bosphorus Bridge in the background, flies on a passenger ferry in Istanbul, Türkiye September 30, 2020. (Reuters)

Turkish banks will pay the price throughout next year as challenges linger from the country's economic turnaround, the chief executive of lender Isbank said in an interview, adding he expects the central bank to begin cutting interest rates this November.

CEO Hakan Aran told Reuters that Türkiye's largest private bank by assets plans to expand its footprint in payment system infrastructure, digital platforms and service banking, where it will make new partnerships and acquisitions abroad.

The growth plan comes as Isbank marks its 100-year anniversary, and as Turkish authorities seek to stamp out soaring inflation with high interest rates and other tightening measures that have squeezed financial-sector balance sheets.

"I think difficulties will also continue throughout 2025. We all will continue to pay the price for the sake of ensuring price stability and lowering inflation," Aran said in the interview at Isbank's Istanbul headquarters.

"Banks will overcome this process with a deterioration in net interest margin this year, and a deterioration in the asset quality next year."

Asset quality already began eroding in July, while net interest margins are under serious pressure, Aran added.

"Banks' return on equity is decreasing. If we were mandated to do 'inflation accounting', many banks would probably be reporting losses," he said. "Banks seem to be profitable right now because there is no inflation accounting."

The government last year excluded banks from companies applying inflation-adjusted accounting methods to their balance sheets over concerns it would result in tax revenue losses.

Since June last year, the central bank has hiked its policy rate to 50% from 8.5% to reverse years of unorthodox easy-money policies under President Tayyip Erdogan, who supported the U-turn.

Inflation dipped below 62% last month and is expected to continue easing, setting up potential rate cuts in the months ahead.

Aran predicted the central bank would begin easing monetary policy in November with a 250 basis-point cut, roughly in line with analysts' expectations. The rate would fall to 45% by year end and to 25% by end-2025, he predicted.