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8.1.3 Deposits
Turkish real persons’ FX deposits at local lenders rose to a fresh record high of $119bn as of September 27 from $118.6bn a week ago, latest data from the central bank showed on October 4.
Turkey has increased the insurance limit for deposits to Turkish lira (TRY) 150,000 (€24,000) from TRY 100,000.
The loans/deposit ratio has skyrocketed over the past 16 years as a result of the credit-fuelled growth strategy seen under Turkish leader Recep Tayyip Erdogan. The ratio was only 48% in 2003. By July 2019 it had jumped to 110%.
As of September 13, deposits parked with local banks stood at TRY2.4bn, marking a rather weak 8% increase on an annual basis. Lira deposits were up 7.4% y/y to TRY1.13trn while FX deposits were nearly 17% y/y higher at TRY217bn.
8.1.4 NPLs
Reports suggest Turkish companies have requested that banks restructure at least $30bn of loans.
S&P’s lead Turkey analyst Maxim Rybnikov said in August that the combined level of problem loans, including both NPLs and restructured loans, was
55 TURKEY Country Report October 2019 www.intellinews.com
