Türkiye | Weekly Banking Tracker. May 17, 2024

Summary

FC adjusted weekly credit growth decelerated further to 0.1% in the week ending by May 17th due to consumer credits in public banks.

Key points

• Key points:
• Among the sub-segments of TL credits, the weekly negative growth in TL commercial credits turned into positive thanks to non-SME lending in public banks.
• Consumer credits contracted last week due to all of its sub-segments in public banks, mostly led by general purpose loans.
• FC credits’ weekly growth continued to accelerate strongly again, led by private banks’ non-SME lending. Thanks to continuous weekly growth seen since 4Q23, its trend rate reached its highest level since 2011.
• The fall in FC protected scheme (in US dollar terms) decelerated last week and declined by $642mn to USD 68.2bn. The downward trend in FC protected scheme will gain momentum following the yesterday’s CBRT decision on increasing the reserve requirement ratios for these accounts for certain maturities.
• The Non-Performing Loans (NPL) ratio of the sector rose to 1.6% (1.2% in public; 2% in private). The rise is coming from general purpose loans (3.1%) and consumer credit cards (1.9%) of both public and private banks. The NPL ratio in commercial credits is stable at 1.4% since March’24.

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