Türkiye | Weekly Banking Tracker. March 1, 2024

Credit growth accelerated on the week ending by March 1 due to commercial credits of both public and private banks. Total credits’ 13-week annualized trend rose from 27.7% to 29.4%.

Key points

• Key points:
• Consumer credits decelerated due to general purpose loans in the sector. Consumer credit cards has been accelerating since 2 weeks in the sector , with a faster rate in public banks.
• TL deposits fell by TL 64.2bn led by the fall in TL time deposits of corporates.
• Residents’ FC deposits fell by $897mn led by the decline in corporates’ ($2bn) USD deposits compared to increase in hholds’ both gold and USD deposits by a total of $1bn. Adjusted from price effects, FC deposits rose by $330mn on a year to date basis.
• The FC protected scheme (in US dollar terms) continued to fall to USD 74.3bn. The share of TL deposits excluding FC protected scheme in total deposits fell to 43.2% (vs. the CBRT’s target of 50% in 2024).
• In its release dated March 6, the CBRT reduced the monthly growth caps for consumer general purpose loans and lira commercial loans to 2% (from 3% and 2.5%, respectively) in the case of banks' bond obligations. Later, on March 7, the CBRT decided to implement TL required reserves for the loans determined by the CBRT exceeding the monthly growth rate of 2% (to be kept blocked for one year) as of March 29. The CBRT aims to decelerate credit growth and reduce dollarization tendency of residents.

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