The effect of the regulation of the Central Bank of the Republic of Turkey (CBRT), which was announced in the Official Gazette published on Saturday, started to show itself in the credit market. CBT lowered the reference interest rate to 15.34 percent with a 98 basis points decrease in parallel with the policy rate cut. The interest rates indicated by the coefficients in commercial loans decreased from 22.85 percent to 21.5 percent and from 29.38 percent to 27.6 percent, respectively.
According to the information given by banking sources to Bloomberg HT, commercial loan rates in the short term have decreased to 20-20.75 percent. In the long term, fixed-rate loans are not preferred for a while.
On the one hand, banks are trying to protect existing loans. The high weight of short-term in the current loan stock indicates a large amount of loans that will mature towards the end of the year. Bank management’s agenda includes how much of these loans will be renewed and how.
The retrospective implementation of the regulation starting from the end of July creates discomfort for the banks. It is stated that banks, which expanded rapidly in the period between the day the regulation came and the start date, acted more sluggishly in new loans.
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