Turkey's Credit Interest Rates Decrease: Deposit and Credit Information

Sharp Drop in Credit Interest Rates

Recent changes observed in the Turkish banking sector have stirred the markets. The total deposits of the banking sector reached 27 trillion 671 billion 941 million 179 thousand liras with an increase of 862 billion 457 million 378 thousand liras compared to the previous week ending on December 12.

Decrease in Credit and Deposit Rates

According to the weekly monetary and banking statistics announced by the Central Bank of the Republic of Turkey (CBRT), total deposits of bankers increased by %3.2 to 27 trillion 671 billion 941 million 179 thousand liras, attracting attention. The recorded 7-point decrease, especially in consumer loans, raised curiosity in the markets.

Consumer and Commercial Loans

Consumer loans decreased from %64.6 on December 5 to %57.9 this week. During this period, commercial loans also fell from %54.6 to %50.6, showing a 4-point decrease.

Status of Deposit Rates

In the same week, the average compound TL deposit interest rate for 1-3 months maturity dropped from %47.7 to %46.6. These figures present an important indication for savers and investors.

Increase in Consumer Loans

The total consumer loans of domestic residents in the banking sector increased by %1.2 last week, reaching 5 trillion 497 billion 578 million 826 thousand liras. Within these loans, housing loans amounted to 665 billion 955 million 502 thousand liras, vehicle loans to 50 billion 279 million 772 thousand liras, consumer loans to 2 trillion 108 billion 227 million 804 thousand liras, and individual credit cards to 2 trillion 673 billion 115 million 748 thousand liras.

Total Credit Volume

The total credit volume of the banking sector, including the CBRT, also increased by 262 billion 889 million 424 thousand liras in the week ending on December 12, reaching 21 trillion 818 billion 567 million 125 thousand liras.