Türkiye | Weekly Banking Tracker.March 8, 2024

In the week ending by March 8, foreign currency adjusted weekly credit growth remained at around 1%. Total credits’ 13-week annualized trend rose from 29.4% to 34.4% due to impact of strong weekly growth rates of the last 3 weeks.

Key points

• Key points:
• TL commercial credits’ weekly growth continued to accelerate due to both SME and non-SME lending in public banks. Consumer credits’ weekly growth (excluding credit cards) rose slightly with general purpose loans in public banks. The weekly growth of consumer credit cards fell significantly in the sector.
• Residents’ FC deposits rose by $5.7bn due to the increase in both corporates’ ($2.3bn) and hholds’ USD deposits ($1.8bn). Year to date, FC deposits rose by $4.3bn if price effects are adjusted.
• The FC protected scheme (in US dollar terms) continued to fall and declined to USD 72.4bn. The share of TL deposits excluding FC protected scheme in total deposits fell to 42% (vs. the CBRT’s target of 50% in 2024).
• Weekly increases in interest rates were high last week, with almost 200bps in commercial rates (rising to 55.3%) and 313bps in consumer rates (rising to 61.7%).
• TL deposit rates rose by 38bps to 48.2%. Among the brackets, the strongest increase was in up to 1yr bracket with 183bps rising to 43.4%. The highest TL deposit interest rate remains to be in up to 3months bracket with 53.6%.

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