TL deposit interest rates started to rise again due to the CBRT’s increase in interest rates to 50% and the additional tightening steps taken beforehand. Despite this, outflows from KKM have come to a halt. Banking sources say that if things continue like this, KKM will increase again.
Banks’ return to TL targets are in trouble
TL deposit interest rates started to rise again due to the CBRT’s increase in interest rates to 50% and the additional tightening steps taken beforehand. Despite this, outflows from KKM have come to a halt. Banking sources say that if things continue like this, KKM will increase again.
Outflows from Exchange-Protected Deposit (KKM) accounts have decreased significantly in recent weeks. Banking sources point out that the renewal rates in KKM, where outflows have accelerated since the beginning of the year, have recently exceeded 80% again, and they are of the opinion that the claims in the market that the dollar will increase after the elections are effective in this.
According to the news of Birol Bozkurt from the World, sources say that customers continue to renew their foreign currency conversion KKMs despite banks increasing TL deposit interest rates to 60%, and that banks are having difficulty in meeting the TL conversion targets given by the Central Bank. KKM decreased by ₺8.11 billion to ₺2.29 trillion in the week of March 15. Pointing out that new entries to KKM have also increased, banking sources say that KKM may increase again in the coming period.
DEPOSIT INTEREST RATES APPROACHED 60%
According to the data announced by the Central Bank, the total deposits of the banking sector (including interbank) increased by ₺200.6 billion in the week ending March 15, reaching ₺15 trillion 935 billion. While the 1-3 month TL deposit interest increased from 53.63% to 55.7%, it was seen that some banks increased the interest rates up to 57% this week.
In the same period, TL deposits in banks increased by 0.96% to ₺8.7 trillion, and foreign currency (FX) deposits increased by 1.96% to ₺6.5 trillion. While total FX deposits in banks amounted to $215.3 billion, $182.8 billion of this amount was collected in the accounts of domestic residents. Considering the data adjusted for parity effect, there was an increase of $1.9 billion in the total FX deposits of domestic residents.
RECORD INCREASE IN CONSUMER LOAN INTEREST
The Central Bank’s tightening steps manifested themselves in the week of March 15. Accordingly, commercial loan interest rates increased from 55.76% to 58.5%. Consumer loan interest rates broke last week’s record. Consumer loan interest rates, which were 63.36% in the week of March 8, increased by approximately 13 points to 76% in the week of March 15.
It was observed that the reserve requirement step introduced by the Central Bank in monthly loan growth at the beginning of March was effective in this increase. While consumer loans in deposit banks decreased by 0.15% last week to ₺1 trillion 504 billion, a record increase in interest rates was observed. Consumer loan interest rates, which were 63.36% last week, were recorded as 76%.
CREDIT CARD VOLUME STARTED TO DECLINE
When we look at BRSA data, it seems that the credit card volume started to decline in the week of March 15. Retail credit card volume, which was at the level of ₺1 trillion 319 billion in the week of March 8, decreased by ₺10 billion to ₺1 trillion 309 billion in the week of March 15. It is thought that the measures taken by the Central Bank at the beginning of March, as well as the increase in the monthly maximum contractual interest rate to be applied on cash advance transactions on credit cards and overdraft accounts from 4.42% to 5%, are effective in this.
ONLINE CARD PAYMENTS APPROACHED ₺294 BILLION
Online card payments increased by 177% compared to the same period last year, approaching ₺294 billion. The share of online card payments in total was 26%. While the number of online card payments increased by 39% to 203 million, the share of online card payments in total was 15%. The number of contactless payments made with cards increased by 62% compared to the same period last year, reaching 856.9 million. The amount of contactless payments increased by 188% to ₺290.6 billion. In February, 3 out of every 4 card payments made in-store were made contactless.
Source: Patronlardunyasi / Prepared by Irem Yildiz