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Decline in Confidence in Financial Services

The Financial Services Confidence Index fell by 0.7 points in February compared to the previous month, reaching 170.3 levels. The Central Bank of the Republic of Turkey (CBRT) announced the Financial Services Statistics and Financial Services Confidence Index (FHGE) for February. According to the survey results obtained by weighting and aggregating the responses of 148 institutions operating in the financial sector, FHGE decreased by 0.7 points in March compared to the previous month, reaching 170.3 levels. When the diffusion indices related to the survey questions that constitute the index were examined, it was observed that the recent job situation and the demand for services influenced FHGE in a positive direction, while the expectation of an increase in demand for services in the next 3 months had a negative impact on FHGE. Evaluations regarding job status and demand for services showed that the assessments indicating an improvement in job status in the last 3 months strengthened compared to the previous month. While the assessments indicating an increase in demand for services in the last 3 months slightly strengthened, expectations of an increase in demand for services in the next 3 months weakened. According to the evaluations regarding employment, the trend in favor of those reporting an increase in employment in the last 3 months strengthened, while the trend in favor of those expecting an increase in employment in the next 3 months weakened. In March 2025, when confidence indexes in the “Financial and Insurance Activities” sector are evaluated by sub-sectors according to NACE Rev.2 sector classification, it was observed that there was a decrease of 0.8 and 20.1 points in the sectors of “64-Financial Service Activities (excluding insurance and pension funds)” and “66-Support Activities for Financial Services and Insurance Activities”, respectively, compared to the previous month. Additionally, there was an increase of 1.5 points in the sector of “65-Insurance, Reinsurance, and Pension Funds (excluding mandatory social security services)”.

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