Commercial loan interest rates hit a 21-year high

Commercial-Loans

While the loan volume of the banking sector experienced the highest growth in two months, commercial loan interest rates reached the highest level since 2003. Commercial loans with installments increased by 1.7 percent to 1 trillion 343 billion 457 million 536 thousand liras in the week of February 9, while interest rates were recorded as 54.4 percent.

In the week ending February 9, total deposits of the banking sector decreased by 2.1 billion lira compared to the previous week to 15 trillion 277.8 billion lira, while interest rates decreased compared to the previous week.

Central Bank of the Republic of Turkey (CBRT) announced weekly money and banking statistics.

Accordingly, total deposits of the banking sector (including interbank deposits) decreased by 2 billion 73 million 144 thousand TL to 15 trillion 277 billion 796 million 991 thousand TL in the week ending February 9.

In the same period, TL deposits in banks decreased by 0.3 percent to 8 trillion 636 billion 912 million 535 thousand TL, while foreign currency (FX) deposits increased by 0.4 percent to 6 trillion 16 billion 469 million 491 thousand TL.

In this period, interest rates on 1-3 month deposits in banks decreased from 51 percent to 50.9 percent compared to the previous week.

In the week of February 9, a significant jump was observed in commercial loans. While the loan volume accelerated in commercial loans, interest rates also saw a significant jump. Commercial loan rates reached 54.4 percent, the highest level since 2003.

Total FX deposits in banks amounted to 208 billion 101 million dollars last week, while 175 billion 747 million dollars of this amount was collected in the accounts of residents.

Considering the parity-adjusted data, total FX deposits of residents increased by 31 million dollars as of February 9.

The amount of installment commercial loans increased

Consumer loans in deposit banks increased by 0.4 percent last week to 1 trillion 452 billion 20 million 53 thousand liras. In the same period, commercial loans with installments increased by 1.7 percent to 1 trillion 343 billion 457 million 536 thousand liras and credit card balances increased by 0.2 percent to 1 trillion 649 billion 525 million 925 thousand liras.

Of the consumer loans in deposit banks, 394 billion 932 million 629 thousand TL were housing loans, 71 billion 43 million 925 thousand TL were vehicle loans and 986 billion 43 million 499 thousand TL were other loans.

The total loan volume of the banking sector, including the CBRT, increased by 60 billion 599 million 971 thousand liras to 11 trillion 553 billion 574 million 403 thousand liras in the week ending February 9. Total loan volume increased by 52.2 percent compared to the same period last year.

Source: BloombergHT

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