Increase in deposit interest rates

While the total deposits of the banking sector decreased by 207 billion Turkish lira compared to the previous week, the 1-3 month average deposit interest climbed to 51 percent. While the total deposits of the banking sector decreased, there was a jump in the TL deposit interest. While the total deposits of the banking sector decreased by 207.1 billion Turkish lira in the week ending February 2 compared to the previous week and decreased to 15 trillion 280 billion Turkish lira, the average deposit interest rates increased. According to the data of the Central Bank of the Republic of Turkey (CBRT), consumer loan interest rates continued to decrease to 60.7 percent, while increases were observed in commercial loan and deposit interest rates. The Turkish lira deposit interest rate, which had been continuing for a while and dropped below 50 percent in the week of January 25, climbed to 51 percent in the week of February 2. TCMB Governor Fatih Karahan made the following comment regarding the required reserve step recently taken by the bank during the presentation of the first inflation report of the year: "The 3-day data received show that we are in the right direction. We do not have a plan to decrease required reserves." Total deposits decreased According to the weekly money and banking statistics of the Central Bank of the Republic of Turkey (TCMB), total deposits of the banking sector (including interbank) decreased by 207 billion 97 million 721 thousand liras to 15 trillion 279 billion 870 million 135 thousand liras in the week ending February 2. During the same period, TL deposits in banks decreased by 2.2 percent to 8 trillion 664 billion 556 million 779 thousand liras, while foreign currency (FX) deposits decreased by 0.8 percent to 5 trillion 995 billion 97 million 498 thousand liras. Total foreign exchange deposits in banks stood at $209 billion 199 million last week, while $176 billion 290 million of this amount was collected in the accounts of residents. When data adjusted for parity effects are taken into account, total foreign exchange deposits of residents of Turkey decreased by $2 billion 382 million as of February 2. The amount of installment commercial loans increased Consumer loans in deposit banks increased by 0.4 percent last week to 1 trillion 446 billion 410 million 277 thousand liras. During the same period, installment commercial loans increased by 0.5 percent to 1 trillion 320 billion 418 million 308 thousand liras, while credit card balances increased by 3.7 percent to 1 trillion 647 billion 4 million 131 thousand liras. Consumer loans in deposit banks consisted of TL 394 billion 414 million 414 thousand for housing, TL 71 billion 378 million 382 thousand for vehicles and TL 980 billion 617 million 481 thousand for other loans. The total credit volume of the banking sector, including the Central Bank, increased by TL 103 billion 282 million 871 thousand in the week ending February 2, reaching TL 11 trillion 492 billion 974 million 432 thousand. Total credit volume increased by 51.6 percent compared to the same period last year.