(Adds details, background)
ISTANBUL, May 24 (Reuters) - Turkey’s banking sector loan growth may exceed 15 percent this year, lower than an expectation of some 20 percent, IsBank chief executive Adnan Bali said on Wednesday, adding Credit Guarantee Fund-backed (KGF) loans may slow down in the rest of the year.
Speaking to reporters following a meeting in Istanbul, Bali said Isbank granted around 15 billion lira ($4.21 billion) worth of loans backed by the KGF, a Turkish government fund guaranteeing loans to smaller businesses.
Turkish authorities have been trying to boost the banking sector, and the economy in general, with looser banking regulations and a state-backed fund to facilitate and stimulate lending to businesses.
In March, Turkey raised the volume of the KGF by more than ten fold to 250 billion lira.
The loan volume backed by the KGF reached 160 billion lira at the end of April, presidential adviser Cemil Ertem said on Twitter earlier this month. ($1 = 3.5642 liras) (Reporting by Ebru Tuncay; Writing by Ezgi Erkoyun; Editing by Daren Butler)