Improvement in Turkey's banking sector, lower interest rates likely to boost loan growth -cenbank

ISTANBUL, Sept 19 (Reuters) - Improvement in liquidity and the capital adequacy ratios of Turkey's banking sector, as well as lower interest rates are likely to boost loan growth, Turkey's central bank said on Thursday.

In the minutes of last week's monetary policy committee meeting, it said the outlook for economic activity will depend largely on the pace, scope and sustainability of the normalisation in credit conditions.

The bank slashed its policy rate by 325 basis points to 16.5% last week. (Reporting by Ali Kucukgocmen; Editing by Daren Butler)

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