Restrictions on credit card usage have begun. Installment limit reduced
Following claims that had been circulating for some time that 'credit card usage would be restricted,' banks have taken a step that concerns everyone. Recently, it had been suggested that restrictive measures regarding credit card spending would be introduced after the elections.
12punto
It has been claimed that banks have reduced the number of installments for cash advances from credit cards to three as of today. Last month, banks were offering up to 12 installments for cash advances.
According to the report by Sözcü, banking sources stated that credit cards and overdraft accounts are being used heavily as they are seen as the cheapest source of financing.
It was reported that no written instruction was sent to banks from the Central Bank (TCMB) regarding the installment limit on cash advances, but rather verbal guidance was provided.
In the first 9 weeks of the year, while TL loans increased by 5.5 percent, the growth rate in credit card spending reached 13.8 percent.
ADDITIONAL TIGHTENING MEASURES HAD BEEN ANNOUNCED
Following February inflation exceeding expectations, the TCMB announced additional tightening measures last week.
In the announcement, it was stated that within the scope of the securities maintenance practice based on credit growth, it was decided to reduce the monthly growth limit for TL commercial loans from 2.5 percent to 2 percent, to reduce the monthly growth limit for consumer loans from 3 percent to 2 percent, and to maintain the 2 percent limit for vehicle loans.
In order to increase the effectiveness of the practice regarding credit growth limits, a decision was made to establish mandatory reserves based on credit growth in addition to the securities maintenance practice.