Turkey’s loan growth slightly decelerates to 19.84% y/y as of May 17.

By bne IntelliNews May 28, 2013

Turkish banks’ loans rose by 0.92% w/w to TRY 875bn (EUR 367bn) as of May 17, according to the latest data from the banking watchdog BDDK. The y/y growth slightly decelerated to 19.84% as of May 17 from 20% y/y as of May 10 while banks’ loans rose 8.63% compared to end-2012. The loan growth rate compared to end-2012 was 7.63% as of May 10.

Sector players tended to expand loan volume, despite the monetary and government authorities’ concerns over the potential risks from the country’s current account deficit. Given weak GDP growth in 2012 and recently strengthening capital inflows, the central bank cut the benchmark rates further in the last monetary policy committee meeting which is expected to result in declines in market rates and, as a result, which may lead to further expansion in loan volume. The central bank targets to keep loan growth at about 15% y/y in 2013.

In Q1, CA deficit decreased by 2% y/y to USD 15.9bn from USD 16.3bn a year ago. In parallel with a slower growth, the CA deficit declined to USD 47.5bn in 2012, just around 6% of the country’s GDP, from a record high of USD 75.1bn in 2011. Central Bank governor Erdem Basci recently argued that under current global economic conjuncture a 6% of CA deficit (of GDP) is manageable but an ideal CA deficit/GDP ratio for the Turkish economy is 5%.

Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

Four Turkish companies reportedly consider IPOs in London or Istanbul

Turkey’s Enerjisa, Memorial Health Group, Tab Gida and Baskent Gaz are considering public offerings in London or Istanbul, unnamed sources told Bloomberg on July 19. Enerjisa, a 50:50 JV ... more

Turkey bars entry to thousands from more than 140 nations over suspected IS ties

Turkey has arrested and deported thousands of people suspected of having links to the Islamic State group according to a Turkish interior ministry report entitled “Turkey’s Fight ... more

Evolution Equity Partners closes $125mn cybersecurity-focused fund

Evolution Equity Partners announced on 17 July the final closing of a new fund with total capital commitments of $125mn to make investments in cybersecurity and next generation enterprise software ... more

Most Read

  1. Wildfires hit Croatia and Montenegro’s Adriatic coast
    6 days ago
  2. Tajik president’s 23-year old daughter appointed deputy head of largest Tajik bank
    5 days ago
  3. Bosnia’s ruling coalition collapses
    2 days ago
  4. Siemens considers quitting Russia
    10 days ago
  5. FINTECH: A Russian fintech revolution is coming
    10 days ago
  1. CHINA RISING: When sleeping giants meet
    13 days ago
  2. Belarus’ retail king Euroopt goes on the road
    19 days ago
  3. STOLYPIN: Russia’s cyber-challenge cuts both ways
    21 days ago
  4. Siemens considers quitting Russia
    10 days ago
  5. COMMENT: Gazprom’s exit from Turkey is a sign of the times
    11 days ago

Selected articles from our premium news/views wire IntelliNews Pro

Login to IntelliNews Pro
Get IntelliNews Pro

Reports

Dismiss