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limits were restricted. These changes are expected
to result in a rising share of commercial loans in
total loans, shortening of credit card installment
periods and declining amounts of consumer credit
cards in the coming period. The effect of these
changes started to show up as personal credit cards
declined on a monthly basis for the first time since
February 2010.
Increase in short-term deposits
Deposits became an important funding source
for the banking sector in 2013; as of December,
total deposits accounted for 54.6% of the funding
sources. The annual growth rate of deposits has
gone up significantly since May due to both rising
deposit rates in line with market interest rates
and increasing foreign exchange rates. In the third
quarter, the annual growth rate of deposits climbed
to 22%. With the impact of the rapid increase
in loans, the deposits to loans ratio followed an
upward trend in 2013 and rose to a historically high
level of 110.7% in December; were as a result,
there was arise in short term deposits.
With the differentiation of the withholding tax
rate according to term of deposit to endorse the
extension of maturities at the beginning of 2013,
the maturity structure of the sector started to
change. However, more than 50% of total deposits
are still comprised of one to three month term
deposits.
Due to reserve requirement applications of the
CBT as well as the rise in the cost of deposits in
line with rising deposit interest rates in the second
half of the year, the banking sector headed toward
non-deposit sources in 2013. In 2013, the credit
rating upgrade of Turkey to investment grade by
another credit rating agency facilitated the supply
of foreign sources to Turkish banks and directed
the sector to non-deposits sources. The share
of non-deposit sources to total liabilities rose to
34.22% in December, the highest level since
December 2002 - the date that the BRSA started to
announce this data. Annual growth of the sector’s
total shareholders’ equity experienced a downward
trend in 2013. While the annual growth rate of the
sector’s total shareholders’ equity was 25.8% by
the end of 2012, this rate declined to a historic low
of 6.5% at the end of 2013.
BANKING SECTOR
Sector continued its loan-based growth
The Turkish banking sector’s total assets
increased 26.4% over the previous year and
climbed to TL 1.73 trillion in 2013. The sector’s
total assets to GDP ratio stood at 107%; the
sector’s asset growth was fueled through
loans and the share of loans in total assets
rose to 60.5% as of December. The annual
growth rate of loans, which had been rising
since November 2012, increased by 31.8% in
December 2013 on an annual basis, amounting
to TL 1 trillion 47 billion. The sector’s securities
portfolio, which had a negative annual growth
rate in the first half of 2013, started to rise on
an annual basis beginning in July with a 6.2%
increase in December 2013, amounting to TL
286.7 billion.
In order to increase the savings rate, one
of the priorities in the Government’s 2014-
2016 Medium-Term Program, BRSA changed
the regulation on consumer credit cards on
October 8, 2013. Within the scope of this
change, general reserve ratios applied to the
consumer loans were increased, while the
overall reserve ratios applied to the cash and
non-cash export credits and cash loans to
SMEs were reduced. The risk weights applied
to credit card receivables were increased by
taking into account the residual maturity of
installment payments. Within the scope of
the regulation, credit card minimum payment
amounts were increased while credit card
2013 IN THE WORLD AND IN TURKEY
Deposits continued to be an important funding
source for the banking sector in 2013. As of
November 2013, deposits accounted for 55%
of total funding sources.
THE
FIRST
mutual
FUND
VakıfBank became one of
the first members of the
ISE. In 1988, the Bank’s
first investment fund
was established. Fund
participation certificates
became available at
all Bank branches and
the Bank’s Securities
Center in Istanbul; these
are targeted to provide
customers with high
returns.
FI
loans
Source: BRSA
Assets (y-y %)
Loans (y-y %)
MDP (y-y %) (Right Axis)
50
40
30
20
10
0
-10
40
30
20
10
0
07/08
12/08
05/09
10/09
03/10
08/10
01/11
06/11
11/12
04/12
09/12
07/13
06/13
12/13