Türkiye: Weekly Banking Tracker, 20 December 2024

The weekly growth of FX-adjusted credits accelerated from 0.3% to 1%. The acceleration was due to both consumer and commercial credits in the sector. Its 4w trend continued to move upwards for the 3rd week in a row and reached almost 0.7% (highest since June’24).

Key points

• Key points:
• Acceleration in consumer credits was seen in all of its subsegments. Trend of GPLs reached its highest level since March’24, probably on top of mostly overdraft loans. Consumer credit card growth was also led by public banks pushing up its 4w trend rate to 5%.
• Weekly growth in TL commercial credits was also strong with almost 1% due to both SME and non-SME lending in the sector, moving up its trend rate further.
• FC deposits rose by $1.5bn due to increase in corporates’ USD deposits by the same amount. Deposit dollarization ratio fell to 35.3% due to the higher increase in TL deposits.
• Commercial credit interest rates fell by 56bps to 55.5%; and consumer rates by 106bps to 64.7%. Spreads in both segments deteriorated by around 100bps, bringing down the consumer spreads to negative levels.
• Today (19/12/2024), the BRSA abolished the implementation of 200% risk weights on commercial credits which will have a positive impact on the CAR of the sector. It will also increase the commercial credit supply of banks by relaxing the RWA amounts. The BRSA also decided that the exchange rate to be used in CAR calculation is revised to the value of 28/06/2024 instead of 26/06/2023 which will likely have a negative impact on the ratio.

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