Türkiye| Weekly Banking Tracker. June 28 , 2024

The negative growth seen last week in FX-adjusted weekly credit growth turned back into strong growth as of end of 2Q’24. The acceleration was due to commercial and consumer credits of both public and private banks. Total credits’ 4 week average trend rose to 0.4%.

Key points

• Key points:
• The strong weekly growth in TL commercial credits occurred due to SME and non-SME lending in the sector. Growth in consumer credits was led by general purpose loans (GPL) of public banks. Regarding the CBRT growth caps of 2% in GPL and auto loans, 4w growth in auto loans is below the rule however monthly growth in GPL reached above the threshold.
• Contraction in last week’s credit card data turned into strong positive growth in the sector as well.
• After 4 weeks of deceleration following the introduction of the 23rd May CBRT regulation (monthly growth limit of 2% for FC loans), FC credits’ weekly growth accelerated led by the SME lending the sector. 4w average hovers around 0.4% in the sector, much below the regulatory threshold.
• The decline in FC protected scheme (in US dollar terms) continues with deceleration and fell by another $566mn to USD 61.97bn. The share of TL deposits excluding FC protected scheme in total deposits rose to 50.5% (vs. the CBRT’s target of 50% in 2024).
• The Non-Performing Loans (NPL) ratio of the sector fell to 1.5% (1.26% in public; 1.95% in private).

Authors

Geographies

Topics

Tags