KKM Accounts Slip While Bank Credit Hits Record High

Turkish banking system's KKM (Currency-Protected Turkish Lira deposits and participation accounts) fell by 34 million lira last week, settling at 157 million lira.

Credit Surge: Consumer Loans Break Records

■Consumer loans rose to 3 trillion 430 billion 225 million lira, up 32 billion 24 million lira from the prior week.

■The loan mix includes 816 billion 61 million lira in mortgage loans, 42 billion 112 million lira in auto loans, and 2 trillion 572 billion 53 million lira in personal needs loans.

■Installment commercial loans increased by 35 billion 874 million lira, reaching 4 trillion 183 billion 818 million lira.

■Individual credit‑card receivables grew 4.4% to 3 trillion 421 billion 840 million lira.

Deposit Tug‑of‑War: Total Bank Deposits Decline

■Total sector deposits fell by 145 billion 752 million lira to 30 trillion 914 billion 613 million lira.

■The KKM balance shrank by 34 million lira, landing at 157 million lira.

Credit Quality & Delinquent Loans: Risk Signals

■Delinquent (follow‑up) receivables rose by 8 billion 466 million lira to 818 billion 532 million lira.

■Special provisions were set aside for 612 billion 726 million lira of this amount, highlighting credit‑quality pressure.

Liquidity & Capital Buffers: Banks' Resilience Test

■Legal capital of the banking system increased by 14 billion 119 million lira, reaching 5 trillion 926 billion 671 million lira.

■Total credit volume grew by 34 billion 338 million lira to 27 trillion 434 billion 439 million lira.

Aylin Güneş – The dip in KKM balances signals a tightening of low‑yield deposit inflows, while the robust expansion of credit portfolios adds fresh strain on risk management and liquidity profiles. The rise in capital buffers provides a crucial cushion for the ongoing credit growth. Investors should monitor the sustainability of this credit expansion and the attractiveness of KKM‑type products closely.