FX-Protected Deposit Balances Fall Below ₺626B as Loan Volume Edges Higher

The downward trend in FX-protected Turkish lira deposit accounts (known as KKM) persisted during the week ending May 9, according to the latest Banking Regulation and Supervision Agency (BDDK) data.
The total balance of KKM and participation accounts dropped from ₺659.7 billion to ₺625.9 billion, reflecting continued de-dollarization efforts and reduced reliance on the controversial deposit scheme introduced to stabilize the lira during past market volatility.
Loan Volume Rises as Deposits Decline
Despite the drop in FX-protected accounts, total credit volume increased from ₺18.373 trillion to ₺18.417 trillion, indicating sustained lending activity.
Meanwhile, total deposits across the banking sector edged down slightly from ₺21.544 trillion to ₺21.532 trillion—a minor weekly contraction.
Consumer Credit and Card Debt Climb
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Consumer loans rose to ₺2.26 trillion, up from ₺2.25 trillion
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Credit card debt also increased, climbing from ₺2.068 trillion to ₺2.080 trillion
These figures point to ongoing household demand for credit, even as monetary tightening measures remain in effect.
Non-Performing Loans Tick Up
Non-performing loans (NPLs) rose from ₺388.2 billion to ₺393.6 billion, reflecting a moderate increase in defaulted debt, a trend analysts are closely watching as interest rates remain high and borrower stress accumulates.
The latest figures underline key shifts in Türkiye’s banking sector dynamics: a gradual phase-out of KKM, ongoing credit expansion, and pressure on asset quality amid a delicate macroeconomic balance.