Banks entered the deposit race
new The tendency of citizens to return to foreign currency and the acceleration of the departure of the Protected Currency Deposit (KKM) raised the expectation of an increase in interest on TL deposits, where competition between banks has intensified in the last period. As a result of the Central Bank’s measures to increase TL deposits, banks have been aggressively trying to convert their foreign currency deposits into TL or protected foreign currency deposits for some time. Currently, with the ‘welcome interest’, TL deposit interest of 25-30 percent is found in the banking sector.
MAY EXCEED 30 PERCENT
The increase of the Central Bank’s deposit target (CBRT) from 50 percent to 60 percent for the first half of 2023 and the implementation of the system of rewards and penalties in line with this goal forces banks to compete for the deposits.
Analysts say that if the market demand for foreign currency continues to rise and the KKM exit continues, interest rates of over 30 percent may be seen on TL deposits. While the CBRT policy rate was 9 percent, the weighted deposit interest rates up to 3 months increased to 24.03 percent as of the week of January 6.
Industry TL deposit average is 55 percent
According to weekly data from the Banking Regulation and Supervision Agency (BDDK), 55.57 percent of total bank deposits as of January 6 are TL deposits. This rate had increased to 56.34 percent with the decrease in currency deposit accounts in the last 2 months of 2022. However, in the first week of 2023, the weight of TL decreased with the purchase of 3.4 billion dollars by citizens when resorting again to foreign currency, and the outflow of TL 95.4 billion in the last three weeks in KKM. These rates are well below the 60 percent target of the CBRT’s “liquidation strategy.”
Exchange had nightmares
The CBRT increased banks’ value establishment rate from 5 to 10 percent, on the grounds of encouraging de-dollarization. Consequently, the value establishment rate is increased by 7 percentage points for banks with a TL share of less than 50 percent in deposits, a penalty increase of 2 points for banks between 50 and 60 percent. , and a discount of 5 points for banks between 60 and 60 percent. 70 percent, A discount of 7 points is applied to banks with 70 percent or more.