Financial Services Confidence Index Rises by 6 Points

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Financial Services Confidence Index Rises by 6 Points

In October 2024, the Financial Services Confidence Index (FHGE) recorded an increase of 6.0 points compared to the previous month, reaching a level of 173.6. According to a report released by the Central Bank of the Republic of Turkey (TCMB), the results of the Financial Services Survey for November 2024 were obtained by weighting and aggregating the responses from 148 institutions operating in the financial sector.

When examining the diffusion indices associated with the survey questions that form the index, it was observed that the employment situation in the past three months and the demand for services positively impacted the FHGE, while the expectations for demand for services in the next three months had a negative effect on the FHGE.

The report provided the following information: "Based on assessments of the employment situation and demand for services, it is observed that evaluations indicating an improvement in the employment situation and an increase in demand for services in the last three months have strengthened compared to the previous month. However, expectations for an increase in demand for services in the next three months appear to have weakened somewhat.

Regarding employment assessments, the trend favoring those reporting an increase in employment over the past three months has somewhat strengthened, while the trend expecting a decrease in employment in the next three months has shifted in favor of those reporting an increase.

In November 2024, according to the NACE Rev.2 sector classification, when evaluating confidence indices in the "Finance and Insurance Activities" sector by subsector, a 6.6-point increase was observed in the "64-Financial Service Activities (excluding insurance and pension funds)" sector compared to the previous month, while decreases of 0.5 and 28.7 points were observed in the "65-Insurance, Reinsurance and Pension Funds (excluding mandatory social security services)" and "66-Other Financial Service Activities" sectors, respectively."