Loans take off in Türkiye despite soaring borrowing costs – Türkiye Today
Photo illustration shows rolled Turkish lira banknotes set against a backdrop of financial charts and the national flag, accessed on June 9, 2025. (Collage by Türkiye Today/Mehmet Akbas)
June 09, 2025 03:51 PM GMT+03:00
Bank lending in Türkiye rose sharply to ₺15.55 trillion ($440.98 billion) in 2024, up 37.7% from ₺11.2 trillion ($380.5 billion) in 2023, despite persistently high interest rates that typically dampen credit demand.
The figures, published by the Banks Association of Türkiye, indicate sustained credit expansion in a tightening monetary environment, even as the policy rate remained at 50% for most of the year, starting in March.
Credit volumes continue uninterrupted growth
According to the figures, Türkiye’s banking sector has maintained consistent growth in loan volumes over the past five years.
The total value of outstanding loans stood at ₺3.4 trillion ($115.6 billion) in 2020, ₺4.7 trillion ($152.8 billion) in 2021, and ₺7.2 trillion ($384.2 billion) in 2022 before reaching ₺11.2 trillion ($380.5 billion) in 2023.
Loans are divided into two main categories: specialized and non-specialized. In 2024, specialized loans increased by 46% to ₺1.2 trillion ($34.57 billion), while non-specialized loans rose by 38.2% to ₺14.35 trillion ($406.41 billion).
Annual distribution of bank loans in Türkiye by type from 2019 to 2024, showing specialized and non-specialized lending in USD terms, created on June 9, 2025. (Chart by Onur Erdogan/Türkiye Today)
Agriculture takes the largest share in sector-specific loans
Among specialized lending, agriculture accounted for the largest share in 2024, with ₺835.2 billion ($23.66 billion) in loans. Other sector-specific loans followed at ₺318.1 billion ($9.01 billion), real estate loans at ₺43.5 billion ($1.23 billion), and tourism loans at ₺19.9 billion ($0.56 billion).
Deposits increase alongside credit
Total bank deposits also showed vigorous growth, reaching ₺18.30 trillion ($518.84 billion) in 2024, a 28.6% increase from ₺14.2 trillion ($482.1 billion) in 2023.
Deposits represent customer funds held in banks either without a maturity date or with predetermined conditions for withdrawal.
Annual breakdown of bank deposits in Türkiye by currency from 2019 to 2024, with Turkish lira and foreign currency-denominated components, created on June 9, 2025. (Chart by Onur Erdogan/Türkiye Today)
Lending by infrastructure bank rises modestly
Ilbank, a public institution that provides financial and technical assistance to municipalities for infrastructure development, extended ₺75.8 billion ($2.15 billion) in loans in 2024, up from ₺65.1 billion ($2.21 billion) in 2023.
These credits include both specialized and non-specialized types. As the report did not include province-level breakdowns, the bank’s figures were listed as a separate entry.
June 09, 2025 04:00 PM GMT+03:00