Credit growth aligns with disinflation path: Central Bank

ANKARA

Credit growth in Türkiye shows alignment with the disinflation trajectory due to tight monetary conditions, the Central Bank's latest Financial Stability Report stated on Nov. 28.

The semiannual report, the second of 2025, emphasized that stringent financial conditions continue to support demand balancing and disinflation.

"Tight monetary stance has resulted in credit growth exhibiting a profile consistent with the disinflation path. Credit and deposit pricing tracks policy rate changes and expectations. Macroprudential measures have slowed foreign currency credit growth and strengthened monetary transmission," it said.

The report noted that after first quarter market turbulence, stability returned, boosting interest in lira assets.

Lira deposit share remained stable at high levels, while Central Bank reserves strengthened.

Currency-protected deposit accounts have ended, with balances now at very low levels.

Despite rising global uncertainties and geopolitical risks, the country's risk premium improved, maintaining favorable overseas financing for banks and the real sector.

Banks' enhanced profitability, along with strong liquidity and capital buffers, contributes to macro-financial stability, the report added.