Decrease in foreign exchange-protected deposits continues

The latest figures published by the Banking Regulation and Supervision Agency (BRSA) for the week ending February 27 revealed significant changes in the banking sector. While an increase in total loans in the sector was notable, the decline in Foreign Exchange-Protected Deposit (KKM) accounts continued.

As of last week, the total volume of loans reached 24 trillion 167.2 billion TL, remaining above the 23 trillion 952.8 billion TL level of the previous week. While the increase in consumer loans also drew attention, the amount reached 3 trillion 32.7 billion TL; individual credit card usage rose to 2 trillion 908.3 billion TL. Additionally, the amount of commercial and other loans was recorded at 18 trillion 226.1 billion TL. Installment commercial loans also reached 3 trillion 677.6 billion TL.

Balances on corporate credit cards showed an increase, with the amount reaching 889.88 billion TL. The size of non-performing loans rose to 652.53 billion TL. A decrease was recorded in the total size of securities, with the figure measured at 7 trillion 87.7 billion TL. On the deposit side, the total volume rose to the level of 28 trillion 286.5 billion TL.

The size of KKM accounts experienced a visible contraction in the reported period, falling from 2.2 billion TL to 2.08 billion TL. Thus, the decrease in Foreign Exchange-Protected TL Deposit and Participation Accounts for the relevant week was recorded as 122 million TL.

The total of non-cash loans and liabilities also increased, reaching 9 trillion 536.6 billion TL. The amount of securities held by banks was recorded at 4 trillion 147.6 billion TL. Securities held on behalf of domestic residents rose to 3 trillion 394.0 billion TL, while those held on behalf of foreign residents rose to 753.56 billion TL.

On-balance sheet foreign currency positions were reported at minus 2 trillion 439.0 billion TL, and off-balance sheet foreign currency positions at 2 trillion 436.0 billion TL. A remarkable recovery was observed in the net general foreign currency position, with the deficit narrowing from minus 10.01 billion TL to minus 3.00 billion TL.

The sector's total legal equity rose to 5 trillion 440.7 billion TL, indicating a strengthening of capital power in the banking system.

News Source: 12punto