"Deposit Decline in the Banking Sector: What Do the Figures Indicate?"

The Central Bank of the Republic of Turkey (CBRT) has announced the weekly monetary and banking statistics regarding the banking sector. According to the data, in the week ending November 7, the total amount of deposits decreased by 481 billion 563 million 197 thousand lira, falling from 26 trillion 603 billion 110 million 327 thousand lira to 26 trillion 121 billion 547 million 130 thousand lira.

This decrease is being assessed as an indicator of significant change within the banking sector. Experts indicate that the decline in deposits is related to fluctuations in financial markets and the effects of inflation.

The high inflation experienced in October may have led individual savers to reassess their deposits. Periods of high inflation typically cause savers to avoid taking risks and seek safer havens. In this context, the decline in deposits is thought to stem from uncertainty in the markets.

In particular, the variability of interest rates offered by banks also leads to fluctuations in deposits. In a high inflation environment, with negative real interest rates, the interest of savers in their deposits may have diminished. This situation poses long-term risks for the banking sector.

This decline in deposits can also indirectly affect banks' lending capabilities. The amount of deposits held by banks serves as a foundation for the lending processes. Decreasing deposits may lead banks to narrow their loan portfolios, which is a situation that should be closely monitored regarding its effects on the economy.

In the upcoming weeks, fluctuations in deposits and developments in the banking sector will attract the attention of market participants, alongside economic data. In the new reports to be issued by the CBRT, the reflections of these changes in deposits may also be observed. The trends we are monitoring could impact not only Turkey but also the overall outlook of the global economy.