May 30, 2022
Retail loan growth, follows a more moderate course compared to commercial loans thanks to macroprudential instruments introduced in 2021 and higher interest rates. Also, the inflation adjusted loan utilizations indicate that commercial loans have grown faster than their long-term trend while retail loans have grown at a pace similar to their long-term trend. Although factors such as increasing working capital needs due to rising commodity prices and increase in stock financing are also considered to be effective in TL commercial loan growth; it is of great importance that loans meet economic activity in a way that supports investment, exports and potential growth. The additional macroprudential measures taken are also expected to provide a supportive contribution in this direction.
The effects of the strengthened macroprudential framework to ensure that corporate loans meet economic activity in line with their intended purposes are closely monitored. TL and long term loan allocations, made in line with the target of sustainable price stability, and in a way that support the current account balance, and increase the efficiency and the potential production, are important elements of the liraization strategy decisively pursued by the CBRT. With the announcement of 23 April 2022, the required reserve ratios for TL loans were increased in proportion to the growth in TL loans extended to companies excluding agricultural loans, SME loans, export and investment loans. In addition, with the announcement on 28 April 2022, the BRSA increased the risk weights of TL commercial loans. Long-term investments, efficient production areas and import substitution activities will be encouraged with the advance loans against investment commitment, which will be financed from the CBRT resources, and it will be ensured that the loans are used in accordance with their purpose without harming price stability and financial stability.
Source: Central Bank of the Republic of Türkiye – Financial Stability Report – May 2022
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