Türkiye | Weekly Banking Tracker. March 22, 2024

In the week ending by March 22nd, foreign currency adjusted weekly credit growth rose from 0.3% to 0.7% due to consumer credits in the sector. Total credits’ 13-week annualized trend hovers around 35%.

Key points

• Key points:
• TL commercial credits’ weekly growth continued to decelerate due to SME lending in the sector. Consumer credits’ weekly growth (excluding credit cards) was strong in both public and private banks, led by the increase in general purpose loans of public banks.
• Regarding the 13 week trend rates, TL commercial credits maintain a slow but steady downward trend; whereas consumer credits remained rather stable. The contraction seen in consumer credit cards turned to positive strong growth with private banks; yet its trend keeps moving slowly downward.
• TL deposits fell by TL 97.1bn, mainly caused by the fall in TL demand deposits of households. Residents’ FC deposits continued to move upward for the 3rd week in a row and rose by another $3bn with the increase in both households’ USD ($918mn) and gold deposits ($1bn) and also corporates’ USD deposits ($1.1bn).
• The FC protected scheme (in US dollar terms) rose the first time since Aug23 and increased by $178mn to USD 71.8bn. The share of TL deposits excluding FC protected scheme in total deposits fell to 41.6% (vs. the CBRT’s target of 50% in 2024).
• Credit interest rates continued to rise sharply for the 2nd week in a row (following the CBRT’s rate hike by 500 bps on March 21st). Commercial credit rates rose by another 374bps to 63.3% (a total of 800 bps in 2 weeks). Consumer rates rose also by another 496bps to 77% (a total of 1525 bps).

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