As of this week, the number of credit card cash advance installments of some banks decreased from 12 months to 3 months. It was stated that the maturity of the interest-free loans up to ₺10 thousand offered by some banks to their new customers decreased from 6 months to 3 months. Additionally, there were sharp increases in commercial loan interest rates this week.
After Central Bank (CBRT) Governor Fatih Karahan pointed out that a new regulation would be made for credit cards at the inflation report meeting in February, a new move came from the banks.
As of this week, some banks have reduced the number of installments in credit card cash advance transactions. Accordingly, the number of cash advance installments in some banks, both public and private, decreased from 12 months to 3 months. According to the information we have obtained, the announcement in internal bank correspondence regarding the limitation of cash advances in installments to 3 months was received by some banks at the beginning of the week, while others received it as of yesterday. However, there has been no development regarding limiting the number of installments for citizens’ card purchases.
‘INTRODUCTION CREDIT’ DATE HAS ALSO BEEN DECREASED
According to Hurriyet’s news, another regulation was for interest-free loans given to citizens with high credit scores and who will be the first customers of the bank.
Interest-free loans of up to ₺10 thousand were given with a maturity of 6 months, depending on the credit score determined by the citizen’s payment habits, limit and debt status on loans, credit cards and overdraft accounts. The maturity of these zero percent interest loans in some banks has decreased to 3 months. It was observed that some private banks also reduced the maturity of the ₺30 thousand interest-free loan they offer to their new customers to 3 months.
SHARP INCREASE IN COMMERCIAL LOAN INTEREST RATES
At the same time, it was learned that there were sharp increases in commercial loan interest rates. It was informed that the annual commercial loan interest rate, which was 48% in February in some private banks, reached up to 77% as of March. It was stated that in some public banks, commercial loan annual interest rates increased from 52% to 56%.
According to CBRT data, commercial loan interest rates are at 54.06% as of March 1. These rates last increased to 54.36% in the week of February 9, reaching the highest level since March 2002.
SHARP INCREASE IN PERSONAL LOAN INTEREST RATES
On the other hand, there have been new increases in personal loan interest rates as of this week. While the monthly interest rate on consumer loans, which was 4.24% last week in some public banks, increased to 4.4%, it was stated that this rate exceeded 5% in some private banks. It has been reported that the interest applied to overdraft accounts, as well as the monthly interest rates of personal loans offered in digital loan transactions, have increased in some banks.
CENTRAL BANK ANNOUNCED ADDITIONAL TIGHTENING STEPS LAST WEEK
After February inflation exceeded expectations, the CBRT announced additional tightening steps last week; The monthly growth limit for TL commercial loans, which was 2.5%, was reduced to 2%. While the monthly growth limit of 3% for consumer loans was reduced to 2%, it was decided to maintain the 2% limit for vehicle loans. In addition, in order to increase the effectiveness of the application regarding credit growth limits, it was decided to establish a required reserve based on credit growth, in addition to the security establishment.
BoFA ALSO EXPECTS INTEREST INCREASE
Following US investment bank JPMorgan and German banking giant Deutsche Bank, Bank of America (BofA) also announced that it expects an interest rate increase from the Central Bank (CBRT) in April. In the note published by BofA, it was stated that the CBRT is likely to increase interest rates by 300 to 500 basis points in April. The note said, “This increase will depend on March inflation data. “In case of interest rate increase, capital inflows may restart in the second quarter.”
Source: Patronlardunyasi / Prepared by Irem Yildiz