“KKM shares have been declining continuously for 72 weeks”

Finance and Finance Minister Mehmet Şimşek evaluated the latest data on KKM in his post on his social media account.

Şimşek stated that KKM shares have been declining continuously for 72 weeks:

“KKM shares fell from 3.4 trillion lira to 1.1 trillion lira, which was its peak in August 2023. KKM's share of total deposits fell from 26.2 percent to 5.9 percent. This will strengthen macroeconomic financial stability, Turkish “We will continue our policy.” will strengthen confidence in the lira.”

The decline in KKM account balances continues

According to the weekly bulletin of the Banking Regulation and Supervision Agency (BRSA), the total credit volume of the banking sector increased by 57 billion 395 million liras in the week of January 3, from 15 trillion 900 billion 565 million liras to 15 trillion 957 billion 960 million liras.

Total deposits in the banking sector, including interbank ones, fell by 337 billion 133 million lira last week, falling to 18 trillion 661 billion 618 million lira.

The amount of consumer credit reached 2 trillion 19 billion lira

The amount of consumer loans increased by 7 billion 716 million liras as of January 3, reaching 2 trillion 19 billion 428 million liras. Of this, 513 billion 527 million lira were for housing loans, 74 billion 498 million lira were for vehicle loans and 1 trillion 431 billion 403 million lira were for consumer loans.

During this period, the amount of commercial installment loans increased by 40 billion 844 million lira, reaching 2 trillion 215 billion 51 million lira.

Banks' individual credit card claims increased by 2.5 percent and reached 1 trillion 840 billion 735 million lira. Of the individual credit card receivables, 644 billion 614 million lira were installment debts and 1 trillion 196 billion 121 million lira were debts without installment payments.

Legal stocks fell

As of January 3, non-performing assets in the banking sector increased by 6 billion 182 million lira compared to the previous week, reaching 293 billion 695 million lira. A special provision was created for non-performing claims amounting to 222 billion 92 million liras.

During the same period, the legal capital of the banking system decreased by 79.1 million lira, reaching 3 trillion 400 billion 896 million lira.

The KKM balance decreased last week by 1.9 percent and 21 billion 89 million lira to 1 trillion 108 billion 810 million lira.

The size of the KKM was therefore 5.94 percent of the total deposits.