Turkiye’s Banking Sector Sees Fastest Ever Drop in KKM Balances, While Consumer and Commercial Loans Continue to Climb
In a significant shift within Turkiye’s banking sector, KKM (Currency-Protected Deposit) balances experienced the fastest weekly decline on record, dropping by 3.7% or ₺67.7 billion to ₺1.764 trillion as of August 2, 2024. This unprecedented decrease occurred alongside an increase in the sector’s overall credit volume, which grew by ₺138.2 billion to reach ₺14.138 trillion.
According to the latest bulletin from the Banking Regulation and Supervision Agency (BDDK), the total deposits across the banking sector, including interbank deposits, fell by ₺148.4 billion, bringing the total down to ₺16.783 trillion.
Consumer credit also saw growth, with the total amount rising by ₺11.5 billion to ₺1.757 trillion. This included ₺451.4 billion in housing loans, ₺85.7 billion in vehicle loans, and ₺1.220 trillion in personal loans. Commercial installment loans increased by ₺18.9 billion, reaching ₺1.765 trillion, while individual credit card debt rose by 2.7% to ₺1.537 trillion.
Non-performing loans in the banking sector increased by ₺3.1 billion to ₺244.3 billion, with ₺183.7 billion set aside as specific provisions. Meanwhile, the sector’s legal equity capital grew by ₺4.4 billion, totaling ₺3.069 trillion as of August 2.
Source: AA / Prepared by Irem Yildiz