"Currency Protected Deposits Did Not Exceed 200 Billion Lira: Current Situation"

KKM Change: Falling Below 200 Billion Lira

Currency-Protected Turkish Lira Deposits and Participation Accounts (KKM) have experienced a significant decline recently, dropping below the 200 billion lira threshold. In the past week, KKM decreased by 34 billion 296 million lira, reaching a total of 171 billion 15 million lira. This situation reflects that investors continue to seek safe havens and raises questions about the effectiveness of the KKM system.

Banking Sector Credit and Deposit Data

According to the weekly bulletin published by the Banking Regulation and Supervision Agency (BDDK), the total credit volume in the banking sector increased by approximately 97 billion 126 million lira in the week of October 24, reaching 21 trillion 405 billion 72 million lira. This increase indicates that banks' appetite for lending continues and that cash flow in the markets is being maintained.

Decline in Deposits

The total deposits in the banking sector decreased by 214 billion 795 million lira last week, including interbank transactions, falling to 25 trillion 394 billion 799 million lira. This decline is seen as a reflection of the impact of economic uncertainties and inflationary pressures on deposit holders.

Consumer Loans and Debt Structure

During this period, consumer loans increased by 29 billion 89 million lira, reaching a total of 2 trillion 653 billion 307 million lira. Looking at the details of the loans, it is seen that 638 billion 820 million lira consists of housing loans, 49 billion 248 million lira of vehicle loans, and 1 trillion 965 billion 238 million lira of personal loans. These data indicate an increase in individuals' use of credit.

Non-Performing Loans and Legal Equity

As of October 24, non-performing loans in the banking sector increased by 3 billion 974 million lira, reaching a level of 519 billion 48 million lira. Special provisions have been allocated for 383 billion 76 million lira of these receivables. During the same period, the banking system's legal equity also rose by 113 billion 752 million lira, reaching 4 trillion 649 billion 416 million lira.

As a result, the share of KKM in total deposits has been determined to be 0.67 percent. The fluctuations in economic conditions and the pressures on the banking sector continue to be critical factors affecting the dynamic structure of the markets for depositors and credit users.