Türkiye | Weekly Banking Tracker. March 15, 2024

Foreign currency adjusted weekly credit growth fell from 1% to 0.3% due to both commercial and consumer credits in the sector. Total credits’ 13-week annualized trend rose slightly from 34.4% to 35% with the impact of strong weekly growth rates of the previous 4 weeks.

Key points

• Key points:
• TL commercial credits’ weekly growth decelerated due to both public and private banks’ SME and non-SME lending. Consumer credits’ weekly growth (excl. credit cards) turned into contraction led by the strong negative growth in public banks’ general purpose loans. The weekly deceleration in consumer credit cards turned to contraction in the sector as well.
• Residents’ FC deposits rose by $1.7bn due to increase in both hholds’ USD ($503mn) and gold deposits ($862mn). Year to date, FC deposits increased by $5.6bn if price effects are adjusted.
• The FC protected scheme (in US dollar terms) continued to fall and declined to USD 71.6bn. The share of TL deposits excluding FC protected scheme in total deposits remained at 42% (vs. the CBRT’s target of 50% in 2024).
• Weekly increases in interest rates were high last week, with almost 425bps in commercial rates (rising to 59.6%) and 1029bps in consumer rates (rising to 72%). Increase in consumer rate was mainly due to increase in general purpose loans rate with 1264bps moving up to 76% (historically highest level since Jan’2002 where it was 78%)
• As released by the CBRT, TL deposit rates rose by 143bps to 49.6%. Among the brackets, the strongest increase was in longer than 1yr bracket with almost 500bps rising to 44.8%.

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