Page 36 - TURKRptDec20

7.1.3​ Deposits
Lira deposit rates for maturities up to three months ​rose​ to 13.30% as of November 6.
Official inflation stands at just below 12% while a 5% deposit tax on maturities of up to six months is still in effect.
Alarm bells are ringing in the "FX share in residents' deposits". The year of 2001 is the peak to look out for (Chart above by @VeFinans).
7.1.4​ NPLs
Turkey ​is​ currently in the midst of a growing second wave of high stakes debt restructurings. The Turkish banking industry has been ​subject​ to a non-stop loan restructuring cycle since 2016. More industries join the queue with every crisis, and restructuring efforts are now essentially taking place amid interwoven crisis cycles.
A plus for the Turkish banking industry is that their financial statements are unaffected by the situation and they can release huge profits—this is because of the “regulatory forbearance” exercised by the Erdogan administration.
City hospital developers, energy companies, construction companies, tourism
36​ TURKEY Country Report​ December 2020 ​ ​www.intellinews.com