Türkiye| Weekly Banking Tracker. July 05 , 2024

The weekly growth of FX-adjusted credits decelerated from 1.2% to 0.3% due to both commercial and consumer credits of public and private banks. Total credits’ 4 week average trend rose to 0.5%.

Key points

• Key points:
• Weekly growth in TL commercial credits was negative due to SME and non-SME lending in the sector. Deceleration in consumer credits happened in all subsegments. Credit cards continued their strong momentum in public banks whereas they contracted in private banks on a weekly basis.
• FC credits’ weekly growth continued to accelerate for the second week in a row led by the non- SME lending the sector. 4w average is at 1.9% in the sector (vs. the monthly growth limit of 2% for FC loans).
• The decline in FC protected scheme (in US dollar terms) continues with deceleration and fell by another $409mn to USD 61.56bn. The share of TL deposits excluding FC protected scheme in total deposits declined to 50.2% (vs. the CBRT’s target of 50% in 2024).
• Commercial interest rates continued to decline by another 55bps to 60.5%. Consumer interest rates on the other hand rose sharply by 354bps to almost 75% led by the increase in general purpose loan rates by 236bps rising to 77%.
• The Non-Performing Loans (NPL) ratio of the sector rose to 1.6% led by the increase in NPL amount of private banks (1.26% in public; 2% in private).

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