Decline continues in Currency-Protected Deposit accounts

Currency-Protected Turkish Lira Deposit and Participation Accounts (KKM) decreased by approximately 20 billion 177 million liras last week, falling to 1 trillion 470.5 billion liras.

According to the weekly bulletin of the Banking Regulation and Supervision Agency (BDDK), the sector's loan volume increased by 11 billion 97 million liras as of October 11.

The total loan volume of the banking sector rose by 11 billion 97 million liras in the week of October 11, increasing from 14 trillion 954 billion 353 million liras to 14 trillion 965 billion 449 million liras.

Total deposits in the banking sector, including interbank deposits, rose by 126 billion 230 million liras last week to 17 trillion 732 billion 346 million liras.

CONSUMER LOAN AMOUNT REACHED 1 TRILLION 853.2 BILLION LIRAS

The amount of consumer loans increased by 15 billion 301 million liras as of October 11, reaching 1 trillion 853 billion 206 million liras. Of this amount, 471 billion 544 million liras consisted of housing loans, 77 billion 680 million liras of vehicle loans, and 1 trillion 303 billion 983 million liras of personal finance loans.

During this period, the amount of installment commercial loans increased by 4 billion 304 million liras to 1 trillion 937 billion 922 million liras.

Banks' individual credit card receivables rose by 0.4 percent to 1 trillion 635 billion 761 million liras. Of the individual credit card receivables, 557 billion 362 million liras consisted of installment debts, and 1 trillion 78 billion 399 million liras consisted of non-installment debts.

LEGAL EQUITY INCREASED

Non-performing loans in the banking sector increased by 527 million liras as of October 11 compared to the previous week, reaching 265 billion 144 million liras. Specific provisions were set aside for 199 billion 251 million liras of these non-performing loans.

In the same period, the legal equity of the banking system rose by 17 billion 468 million liras to 3 trillion 207 billion 209.3 million liras.

The KKM balance fell by 1.4 percent, or 20 billion 177 million liras, last week to 1 trillion 470 billion 519.6 million liras.

Thus, the size of KKM accounted for 8.29 percent of total deposits.

News Source: AA