Türkiye| Weekly Banking Tracker. August 9, 2024

Summary

After two weeks of strong acceleration, the weekly growth of FX-adjusted credits decelerated sharply on the 2nd week of August from almost 1% increase to 0.1%.

Key points

• Key points:
• TL commercial credits’ weekly growth has been decelerating since two weeks led by the SME lending of private banks. Consumer credits accelerated last week due to private banks’ general purpose loans. Having in mind the monthly growth rate limitation of 2% on this segment, 4 week increase has been more than 2% in both public and private banks.
• Consumer credit cards’ growth was negative last week due to contraction in private banks and also strong deceleration in public banks.
• FC credits’ weekly growth decelerated due to non-SME lending in the sector. Monthly growth is 1.6% in both public and private banks (where monthly growth limit has been reduced to 1.5% for FC loans as of July 22nd).
• The FC protected scheme (in US dollar terms) fell by another $2.1bn to USD 51.6bn. The share of TL deposits excluding FC protected scheme in total deposits fell to 51.8% vs 52% previous week (vs. the CBRT’s target of 50% in 2024).
• Although being still much below the historical levels, the Non-Performing Loans (NPL) ratio of the sector maintains its slow upward trend to 1.71% The increase stems from general purpose loans and consumer credit cards. However, the NPL ratio of SME credits started to move up as well since end of June’24.

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