Current State of the Banking Sector According to BDDK Data
Data published by the Banking Regulation and Supervision Agency (BDDK) on November 14, 2024, reveals various dynamics of the Turkish banking sector. Here is the current state of the banking sector and changes that have occurred since the beginning of the year:
Currency-protected deposits and developments in overall deposits As of November 8, the currency-protected Turkish lira deposits and participation accounts in the banking system were reported at 1 trillion 289.58 billion TL. This figure shows a decline compared to the previous week and has significantly decreased from the 2 trillion 626.35 billion TL level at the beginning of the year. Total deposits in the banking system were determined to be 17 trillion 891.07 billion TL, witnessing a decrease from the previous week but showing a significant increase compared to the 14 trillion 843.08 billion TL level at the start of the year.
Credit and debt dynamics Commercial and other credits in the banking sector reached 11 trillion 584.28 billion TL, showing a weekly increase. A substantial increase is observed in the credit amount, which was 8 trillion 961.58 billion TL at the beginning of the year. Consumer loans rose to 1 trillion 897.19 billion TL, showing a modest increase compared to the beginning of the week, but a significant rise has been noted since the beginning of the year. The total of consumer loans and personal credit cards amounted to 3 trillion 564.56 billion TL.
Securities and foreign currency positions The total securities of the banking sector were reported at 5 trillion 40.66 billion TL, indicating a weekly increase and an upward trend since the beginning of the year. The sector's net foreign currency general position was 70.59 billion TL, while on-balance and off-balance sheet foreign currency positions were recorded at -549.77 billion TL and 620.36 billion TL, respectively. Despite showing certain changes on a weekly basis, a general trend of improvement has been noted since the beginning of the year.
Non-performing receivables and sector evaluation Non-performing receivables in the banking sector rose to 276.28 billion TL, exhibiting a weekly increase. These receivables have increased from the 191.43 billion TL level at the beginning of the year, indicating that the debt ratios in the sector need to be monitored. However, the overall positive increases in credits and deposits suggest that the general performance of banks is on a positive trend.
The data published by BDDK indicates that the banking sector has generally grown, and the increase in deposit and credit volumes continues. However, the decrease in currency-protected deposits and the increase in non-performing receivables are areas that require careful monitoring. In light of these indicators, it can be stated that continuing tight fiscal policies is crucial for maintaining balance in the sector.