19.12.2025 17:27
After the Central Bank lowered its policy interest rate to 38%, loan and deposit interest rates at banks sharply declined. While consumer and commercial loan interest rates fell to their lowest levels in over two years, loan growth continued to remain high despite the restrictions.
After the Central Bank's decision to cut the policy interest rate by 150 basis points, significant decreases were observed in the banking sector's loan and deposit interest rates. Consumer and commercial loan interest rates have fallen to their lowest levels in over two years.
HISTORICAL DROP IN LOAN INTEREST RATES
In the second week of December, a noticeable decline in interest rates occurred in the banking sector. Following the Central Bank of the Republic of Turkey's reduction of the policy interest rate to 38%, sharp declines were recorded, especially in loan interest rates. In the week of December 5, average consumer loan interest rates, which peaked at 64.57% in the last three months, fell to 57.89% last week, marking the lowest level in 27 months. Thus, a decrease of approximately 700 basis points in consumer loan interest rates was observed within a week.
LOWEST LEVEL IN COMMERCIAL LOANS IN 25 MONTHS
During the same period, average commercial loan interest rates also declined sharply. Commercial loan interest rates, which stood at 54.57% in the week of December 5, dropped to 50.55% with a decrease of about 400 basis points. This rate is recorded as the lowest level in the last 25 months. Excluding corporate credit cards and deposit accounts with corporate loans, average commercial loan interest rates fell to 45.60% with a decrease of approximately 200 basis points, reaching the lowest level in 27 months.
THE GAP BETWEEN TCMB INTEREST RATE AND LOAN INTEREST RATES NARROWS
While the annual compound of the one-week repo rate, which is the policy interest rate of the TCMB, has decreased to around 46%, the difference between consumer and commercial loan interest rates and the policy interest rate has also narrowed. Experts point out that TL-denominated commercial loans tend to be closer to the policy interest rate due to their shorter maturities. It is stated that inflation expectations, risk premiums, bank profit margins, and regulations are decisive factors affecting this gap.
CURRENT STATUS OF HOUSING AND VEHICLE LOANS
Last week, the average housing loan interest rate in banks was 37.63%, while vehicle loan interest rates were at 33.62%. Despite the inflation rate of 31.07% announced by TÜİK for November and the TCMB's inflation forecast of 16% for the end of 2026, it is emphasized that loan interest rates remain high.
DECREASE IN DEPOSIT INTEREST RATES
The decline in interest rates has also shown its effect on the deposit side. The average deposit interest rates for 1-3 month maturities, which are considered the benchmark, fell to 46.92% last week, reaching the lowest level in the last 24 months. It is noted that due to the short-term nature of deposit interest rates, they move closer to the policy interest rate.
HIGH LOAN GROWTH DESPITE RESTRICTIONS
Despite the monthly limits imposed on loan growth as part of macroprudential measures, the increase in loan volume has drawn attention. As of December 12, the annual loan growth rate was 43.6%, while this rate was calculated as 34.6% when adjusted for currency effects. On an annual basis, the growth in individual loans was 47.1%, while in commercial loans, it was 42.5%.