Türkiye| Weekly Banking Tracker. May 10, 2024

Foreign currency adjusted weekly credit growth decelerated further to 0.3% in the week ending by May 10th. This is due to both commercial and consumer credits in public banks. Total credits’ 13-week annualized trend fell from 36.4% to 35.1%.

Key points

• Key points:
• The weekly negative growth in TL commercial credits continued but with a slight deceleration thanks to both SME and non-SME lending in private banks.
• Consumer credits moderate, caused by auto loans and general purpose loans of public banks; whereas the acceleration in private banks’ general purpose loans is noteworthyThe deceleration in consumer credit cards turned into a weekly contraction, bringing down its trend rate further to 63% (compared to its peak levels of around 290% in Jun23).
• FC credits’ weekly growth accelerated strongly, led by private banks’ SME lending. Thanks to continuous weekly growth seen since the last quarter of 2023, its trend rate reached 48%, the highest level since 2011.
• Commercial interest rates have been declining since the last 3 weeks. The fall was 74bps realizing at 65.3% last week. Consumer rates rose slightly by 47bps to 75.8%.
• Regarding FC credit interest rates, commercial rates on EUR rose by 54bps to 7% compared to a declining trend in the previous 3 weeks. USD commercial rates have been increasing in the same period and rose again last week by 18bps to 9.1% widening the spreads on this segment.

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