Türkiye | Weekly Banking Tracker. April 9, 2024

Foreign currency adjusted weekly credit growth has been decelerating since the start of April; and fell from 0.3% to 0% in the week ending by April 9th, due to commercial credits of both public and private banks. Total credits’ 13-week annualized trend fell from 36.5% to 34.3%.

Key points

• Key points:
• TL credits’ weekly growth has been falling since 2 weeks led by the strong deceleration in TL SME credits of both private and public banks which in fact turned into a weekly contraction last week.
• Consumer credits accelerated in the 2nd week of April (which was also the week of Ramadan Bayram holidays in Türkiye) due to the general purpose loans of the sector.
• The ongoing strong weekly growth of FC credits seen throughout March turned into a weekly contraction as well led both SME and non-SME lending in the sector.
• The FC protected scheme (in US dollar terms) fell by almost $500mn to USD 71.3bn after its increase by around $1bn in the previous week. The share of TL deposits excluding FC protected scheme in total deposits rose to 43% (vs. the CBRT’s target of 50% in 2024).
• The Non-Performing Loans (NPL) ratio of the sector rose to 1.53% (1.19% in public; 2% in private). The rise mainly stems from consumer credit cards which especially shows a fast increase since the start of March’24.

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