ISTANBUL, June 18, 2026 — The balance of Turkey’s currency-protected Turkish lira deposit and participation accounts (KKM) continued its downward trend last week, according to data released by the Turkish Banking Regulation and Supervision Agency (BDDK). The KKM balance fell by 31 million Turkish lira, reaching 279.8 million lira as of the week ending June 12.
The decline comes amid broader developments in Turkey’s banking sector, where lending and deposit volumes continued to expand.
According to the BDDK’s weekly bulletin, the banking sector’s total loan volume increased by 186.9 billion lira during the week, rising from 26.05 trillion lira to 26.24 trillion lira. Total deposits, including interbank deposits, also grew by 75.4 billion lira, reaching 29.71 trillion lira.
Consumer lending maintained its upward momentum, increasing by 41.8 billion lira to 3.33 trillion lira. The total consisted of:
- 793.4 billion lira in housing loans,
- 43.8 billion lira in vehicle loans, and
- 2.49 trillion lira in personal consumer loans.
Installment-based commercial loans rose by 28 billion lira to 4.08 trillion lira, while banks’ individual credit card receivables increased by 1.6% to 3.21 trillion lira. Of this amount, 1.18 trillion lira represented installment-based credit card debt and 2.02 trillion lira consisted of non-installment balances.
Meanwhile, non-performing loans in the banking sector climbed by 9.4 billion lira to 747.9 billion lira. Banks set aside 439.3 billion lira in provisions against these impaired loans.
The sector’s legal equity capital also edged higher, increasing by 1 billion lira to 5.68 trillion lira. Despite the overall growth in banking activity, the continued decline in KKM balances signals the ongoing unwinding of the government-backed deposit scheme, which was introduced to protect savers against exchange-rate volatility.
Source: Patronlar Dünyası/ Prepared by: İlayda Gök