Türkiye | Weekly Banking Tracker. June 7, 2024

FC adjusted weekly credit growth continued to decelerate for the 2nd week in a row; and turned into negative growth from 1% to -0.06% due to significant deceleration in both commercial and consumer credits in the sector.

Key points

• Key points:
• The weekly growth in TL commercial credits contracted due to the SME lending of both public and private banks. Growth in consumer credits was also negative due to all subsegments of both public and private banks. Ongoing strong growth in credit cards’ turned into contraction as well led by the negative growth in private banks.
• FC credits’ weekly growth continued to decelerate for the 2.week in a row led by private banks’ SME lending in the aftermath of the 23rd May CBRT regulation (monthly growth limit of 2% for FC loans).
• TL deposits rose by TL 14bn, led by the TL time deposits of corporates and hholds. The fall in FC deposits was another $1.85bn led by the outflows from both corporates and hholds’ USD deposits by around $900mn each.
• The FC protected scheme (in US dollar terms) continued to decline by $974mn to USD 65.7bn. The share of TL deposits excluding FC protected scheme in total deposits rose to 48.4% (vs. the CBRT’s target of 50% in 2024).
• The Non-Performing Loans (NPL) ratio of the sector rose slightly to 1.6% (1.22% in public; 2% in private).

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