TCMB Survey: Bank Lending Conditions Expected to Ease in Q3 2025

According to the Central Bank of the Republic of Türkiye (CBRT) Bank Loans Tendency Survey, Turkish banks are expected to ease loan standards in the third quarter of 2025, driven by improving domestic and external funding conditions.

Key Highlights:

• Q2 2025 Review:

  • Loan standards were tightened, especially for short-term, FX-denominated, and large enterprise loans.

  • Standards for long-term and TL-denominated loans remained mostly unchanged.

  • For retail lending, consumer loan standards eased, while mortgage and auto loan standards stayed stable.

• Q3 2025 Outlook:

  • General easing expected in loan standards, except for FX loans and loans to large firms.

  • Retail credit standards are expected to remain largely unchanged.

• Credit Demand Trends:

  • Business loan demand increased in Q2, particularly from SMEs, despite a slight decline in TL loan demand.

  • Q3 expectations point to a notable rise in demand for all business loan types.

  • On the household side, mortgage demand rose, while auto and other personal loan demand fell.

  • No significant change in consumer loan demand is expected in Q3.

• Funding Conditions:

  • In Q2 2025, domestic funding conditions improved, while external funding slightly tightened.

  • For Q3, banks expect clear easing in both domestic and external funding environments.

Implications for the Economy:

This anticipated loosening of loan standards—especially alongside growing credit demand—signals a potentially stronger lending environment for the remainder of 2025. The shift could support economic activity, but also warrants caution amid high inflation and external vulnerabilities.