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Total assets of the sector rose by 44.3% to some TRY6.23trn as of the end of October, the regulator said.
Loans extended by local lenders grew nearly 43% to climb to TRY3.66trn. The ratio of non-performing loans (NPLs) to total loans eased to 3.97% as of October, from 5.15% a year ago.
The capital adequacy ratio in the banking sector improved to 19.4% from 18.49%.
Deposits the local banks collected increased by 50% y/y to stand at TRY3.6trn.
There were a total of 52 banks—state-owned, private, Islamic and development and investment—in Turkey as of end-October. Those banks operated with a network of more than 11,000 branches and over 204,000 employees.
7.1.2 Loans
Turkey’s Credit Guarantee Fund (KGF) is set to provide Turkish lira (TRY) 7.5bn worth of loans to small and medium sized enterprises (SME), the KGF said on December 8.
On November 27, the central bank’s financial stability report showed that the outstanding loan volume under the KGF stood at TRY342.7bn at end-September.
Some TRY35.4bn of loans under the KGF should be repaid in Q4 and TRY128.5bn in 2021, according to the report.
On December 29, government-run Halkbank announced a fresh cheap loans campaign for small merchants.
The impact of these indispensable campaigns in keeping companies and small merchants afloat despite curtailments in the overall flow of lira loans into the market will be watched closely.
2020 saw a Turkish lira (TRY) 712bn, or 43% y/y, jump in the Turkish banking industry’s total lira loans and TRY237bn, or 41% y/y, leap in consumer loans.
Thanks to boosted credit, vehicle sales jumped 61% y/y to 773,000 units and home sales jumped 11% y/y to 1.5mn units.
25 TURKEY Country Report February 2021 www.intellinews.com
