Concerns occupying the world markets in the first quarter of 2011 regarding inflation increase yielded their place to the concerns about the deceleration of the global growth in the second quarter. Especially the increase in employment rate and private consumption expenditure in the USA decelerated while Gross Domestic Product growth decreased below 1% in the second quarter.
Meanwhile, concerns about public debt remained as the most important agenda item in Europe. Although the concerns regarding the spreading of the debt crisis to the bigger economies of the Euro zone led to the announcement of additional precaution packages, European Central Bank initiated interest increases with inflation emphasis.
On the other hand, emerging economies, China in particular, maintained their fast-paced growth in comparison with the advanced economies. While this growth acceleration supported the high course of commodity prices, tendency towards contractionary monetary policies in the emerging economies was sustained in the second quarter.
As to our country, implementing the political composition of low policy interest rate and increased required reserves, the Central Bank stuck to this policy stand in the second quarter. However, while the monetary constriction implemented in the second quarter in accordance with the growth deceleration remained limited, the Central Bank indicated the possibility of loosening the monetary policy due to downward risks intended to the global economy. We are anticipating a growth deceleration due to the continuation of this conjuncture in the rest of 2011; however, we still expect the growth rate to be above 5% thanks to the strong performance of the first months.
Our bank has successfully completed the first half of 2011. Our Bank, as it has always done, dedicated its resources substantially to its corporate and retail customers in this period. Our credit volume, which adds up to 67% of our total assets, is a consequence of the support we provide for our customers.
We intend to maintain this behavior in the upcoming period. We have publicly announced the novel banking understanding of our organization via a promotional campaign in the recent quarter. This understanding stands for our servicing approach constituting the basis for our long-standing mode of operation and the challenge to outperforming ourselves. Ever since we set out as Finansbank, we intend to maintain the support and contribution we offered to the real sector in the upcoming period. Proceeding without changing our strategy in these challenging times is a consequence of our trust in our clients and our faith in the contribution we intend to make in Turkish economy. The financial achievements we accomplished in the first half of 2011 are products of our customers' trust, loyalty and persistence to sustain their business relationship with us.
I would like to thank to our supporting stakeholders and our customers, who let us cherish this pride, and enunciate that we will sustain our support and our operations by being worthy of their trust and maximize our success rate.
Ömer A. Aras
Chariman and Group CEO