Despite a Drop in Total Deposits, Commercial Installment Loans and Credit Card Balances Continue to Rise in Turkiye’s Banking Sector
The banking sector in Turkiye experienced a significant reduction in total deposits during the week ending August 2, 2024, with a decrease of approximately ₺109.9 billion, bringing the total to ₺17.292 trillion. This decline was reported by the Central Bank of the Republic of Turkiye (CBRT) in its latest weekly monetary and banking statistics.
According to the data, the sector’s total deposits, including interbank deposits, fell to ₺17.292 trillion, down by ₺109.9 billion from the previous week. Turkish lira-denominated deposits saw a 1.83% decrease, totaling ₺10.354 trillion, while foreign currency deposits increased by 0.49% to reach ₺6.166 trillion.
During the same period, total foreign currency deposits held in banks amounted to $196.3 billion, with $165.5 billion held in domestic accounts. When adjusted for the parity effect, domestic residents’ total foreign currency deposits decreased by $1.142 billion as of August 2.
On the other hand, consumer loans at deposit banks rose by 0.68% to ₺1.667 trillion. Commercial installment loans increased by 1.05% to ₺1.614 trillion, while credit card balances surged by 2.73% to ₺2.015 trillion.
Breaking down consumer loans, ₺406.9 billion was allocated for housing, ₺66.1 billion for vehicles, and ₺1.194 trillion for other loans. The total credit volume in the banking sector, including loans extended by the CBRT, increased by ₺127.8 billion during the week, reaching ₺13.673 trillion—a 38.27% rise compared to the same period last year.
Source: AA / Prepared by Irem Yildiz