Türkiye | Weekly Banking Tracker. September 6, 2024

The weekly growth of FX-adjusted credits continued to decelerate in the first week of September from 0.6% to 0.2% due to commercial credits in the overall sector and consumer credits of private banks, as has been happening since mid-August.

Key points

• Key points:
• TL commercial credits’ weekly growth continued to slow down with ongoing decrease in SME lending in the sector since 3 weeks. Consumer credits are still being rather pushed by public banks also with ongoing momentum in credit cards.
• Last week’s negative FC credits’ growth turned into positive with non-SME lending of private banks. The weekly growth rates in FC credits hover around 0.5% in both public and private banks.
• The FC protected scheme (in US dollar terms) fell by another $554mn to USD 46.7bn (closer to USD 48bn if adjusted by its original currency level). The share of TL deposits excluding FC protected scheme in total deposits declined to 52.1% from 52.5% previous week (vs. the CBRT’s target of 50% in 2024).
• After a 4 week period of declining trend, commercial rates rose by 132bps to 58%. Consumer credit rates on the other hand maintained a declining trend and fell by another 70bps to 68.8%. Fall in consumer rates was due to sharp fall in auto rates by 224bps (47.4%) compared to an increase by 90bps in general purpose loan rates. Housing rates hover at around 43%.
• The Non-Performing Loans (NPL) ratio of the sector rose to 1.73% caused by the NPL amount increase in private banks (1.48% public banks, 2.17% private banks).

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