Turkish Banking Sector’s Credit Volume Hits ₺13.5 Trillion Amid Declining Deposits

Consumer Loans and Commercial Credits Drive Growth Amidst Decrease in Deposits

The credit volume of Turkiye’s banking sector surged to ₺13.5 trillion last week, marking an increase of ₺13.7 billion, according to the latest weekly bulletin from the Banking Regulation and Supervision Agency (BRSA). As of June 7, the total credit volume climbed from ₺13.518 trillion to ₺13.532 trillion.

In contrast, total deposits, including those between banks, fell by ₺30.5 billion, dropping to ₺15.893 trillion.

Consumer loans saw a notable rise, increasing by ₺3.1 billion to reach ₺1.690 trillion. This figure includes ₺447.4 billion in housing loans, ₺91.5 billion in vehicle loans, and ₺1.151 trillion in personal needs loans.

During the same period, installment-based commercial loans grew by ₺9.5 billion, reaching a total of ₺1.671 trillion. Meanwhile, individual credit card debt decreased by 1%, falling to ₺1.440 trillion, with ₺534.4 billion in installment debt and ₺905.4 billion in non-installment debt.

Non-performing loans in the banking sector increased by ₺2.7 billion to ₺213.7 billion, with ₺171.1 billion set aside as special provisions.

Additionally, the banking system’s legal equity capital saw a modest increase of ₺60 million, bringing the total to ₺2.944 trillion. Conversely, the balance of Currency-Protected Deposits (KKM) declined by 1.2%, or ₺26.5 billion, reducing the total to ₺2.098 trillion.

Source: Trthaber / Prepared by Irem Yildiz

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