Türkiye: Weekly Banking Tracker, 11 October 2024
Published on Friday, October 18, 2024
Türkiye: Weekly Banking Tracker, 11 October 2024
Since Oct 11th was the day for finalizing credit growth monthly caps, the weekly growth of FX-adjusted credits decelerated further to 0.2% from 0.4% mainly on top of commercial credits in the overall sector, which brought down the trend rate of total credit growth as well.
Key points
- Key points:
- The deceleration in TL commercial credits deepened further due to both SME and non-SME lending in the sector. The trend rate of SME lending is rather stable whereas it moves down for big firms with the last week’s impact.
- Contrary to commercial credits, consumer credits gained momentum again due to private banks, and in all subsegments of consumer credits. Consumer credit card growth remained almost stable in private banks whereas they decelerated in public banks which overall moved down its trend rate. The recent regulations of the CBRT are expected to lower these levels by squeezing consumption in high card limits as of November.
- FC credits’ weekly growth gained only a slight momentum (also due to both SME and non-SME lending in the sector) keeping its trend rate stable, albeit at the lowest level since the introduction of monthly caps in this credit segment in April.
- TL deposits rose by TL 237.4bn ($6.7bn) whereas FC deposits fell significantly by $3.3bn due to the fall in corporates USD deposit by $3bn. This might further contribute to the deterioration in the net short FX position of the real sector seen since April’24 where the deterioration is deepened by the decline in corporates’ FX deposits following the rapid increase in their FC borrowing.
- Credit interest rates fell last week. The fall in TL commercial credit rates was higher with112 bps (falling to 55.8%) compared to 26bps decline in consumer credit rates. General purpose and auto loan rates rose by around 75bps (to 72% and 43% respectively). Housing rates have been following a slow but steady downward trend since June and fell to 41.6% from 45% by end June. Followed by that, the ongoing growth in housing credits seen in private banks since June is now being followed by public banks since 3 weeks.