Banks expect business loans to tighten further in Q3

According to the Central Bank of the Republic of Turkey’s (CBRT) survey on banks’ assessments for the second quarter of 2024 and their expectations for the third quarter of 2024, banks expect that the tightening in the standards applied to loans to enterprises will continue in general.

Banks’ expectations for the third quarter of the year are that the tightening in credit standards applied to businesses will continue, while the tightening course in housing and personal loans will end.

The Central Bank of the Republic of Turkey (CBRT) published the results of the Bank Loans Tendency Survey, which includes banks’ evaluations for the second quarter of 2024 and their expectations for the third quarter of 2024, on its website.

Analyzing the sub-divisions of the survey, a tightening in the standards applied to all loan types was observed.

For the third quarter of 2024, banks’ expectations for the third quarter of 2024 are that the tightening in standards applied to loans to businesses will continue.

In the second quarter of 2024, the tightening in standards applied to all types of retail loans weakened further, while banks’ expectations for the third quarter of 2024 are that the tightening in standards applied to all types of retail loans will end.

Analyzing the survey results in terms of loan demand, the upward trend in the demand for loans to businesses in general was replaced by a decline in the second quarter of 2024.

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