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Turkish banking sector sees $3.9 billion deposit decline after Trump victory

Turkish banking sector sees $3.9 billion deposit decline after Trump victory A logo of Türkiye's Central Bank (CBRT) is pictured at the entrance of the bank's headquarters in Ankara, Türkiye April 19, 2015. (Reuters Photo)
By Newsroom
Nov 14, 2024 5:47 PM

The Central Bank of the Republic of Türkiye (CBRT) has reported a significant drop in the Turkish banking sector’s total deposits amid heightened global market volatility after Donald Trump’s victory in the U.S. elections.

According to the CBRT’s weekly monetary and banking statistics, total deposits in the Turkish banking sector, including interbank deposits, dropped by ₺134.4 billion ($3.9 billion), bringing the total to ₺18.3 trillion ($534.7 billion) as of the week ending November 8.

During this period, Turkish lira deposits fell by 0.75% to ₺11.1 trillion ($324.2 billion), while foreign currency (FX) deposits decreased by 0.88%, totaling ₺6.4 trillion ($186.3 billion).

The total value of foreign currency deposits in banks reached $198.4 billion, with $166.6 billion held by domestic residents. Adjusted for exchange rate fluctuations, domestic residents’ FX deposits increased by $352 million as of Nov. 8.

Uptick in installment-based commercial loans

Consumer loans in deposit banks rose by 0.68% over the past week, reaching ₺1.8 trillion ($52.5 billion). Installment-based commercial loans also increased by 0.42%, totaling ₺1.8 trillion ($53.1 billion), while credit card balances declined by 1.10%, dropping to ₺2.1 trillion ($62.5 billion).

Within consumer loans, ₺437.6 billion ($12.7 billion) was allocated for housing, ₺57.8 billion ($1.7 billion) for vehicle loans, and ₺1.3 trillion ($37.8 billion) for other types of loans.

The total credit volume in the banking sector, including the central bank, increased by ₺9.1 billion ($265 million), reaching ₺14.7 trillion ($437.5 billion) as of Nov. 8, reflecting a 38.29% year-over-year increase.

Last Updated:  Nov 14, 2024 5:47 PM