TCMB: The use of housing loans may be eased by the end of the year.

With high rents, the reluctance of banks to provide housing loans puts those who want to own a home in a difficult position. However, according to the latest forecasts, there may be surprises regarding this issue by the end of this year.

The "Bank Lending Trends Survey," which includes the evaluations of banks regarding the third quarter of 2024 and their expectations for the last quarter of 2024, has been published by the Central Bank of the Republic of Turkey (TCMB). According to the survey, when examining the sub-components of the third quarter of this year, a tightening of standards was observed across all types of loans.

"HOUSING LOAN USAGE MAY BE EASED"

While the tightening of standards applied to all types of individual loans continued in the third quarter of this year, banks expect that the standards applied to housing loans will begin to loosen in the last quarter of the year, the tightening trend in standards applied to vehicle loans will come to an end, and the tightening trend in standards applied to other types of individual loans will continue.

A DECREASE IN LOAN DEMAND HAS BEEN OBSERVED

When examining the survey results in terms of loan demand, the downward trend in the demand for loans given to businesses continued to weaken in the third quarter of 2024. When examining the sub-components, a decrease in demand was observed for all loans except for loans opened in foreign currency. It was stated that the decrease in demand for loans given to businesses is expected to continue weakening in the last quarter of this year.

"DEMAND FOR VEHICLE LOANS WILL INCREASE"

In the third quarter of 2024, the downward trend in the demand for housing and other individual loans is expected to turn into an increase, while the increase in vehicle loan demand seen in the previous quarter is expected to revert to a decrease. For the last quarter, banks expect that the increase in demand for housing and other individual loans will continue, while the decrease in vehicle loan demand will turn back into an increase.

"LOOSENING IN LOANS IS EXPECTED"

When examining the development of banks' funding capabilities, it was observed that in the third quarter of 2024, there was a tightening trend in domestic funding conditions, while a loosening trend continued in foreign funding conditions. It is expected that the tightening in domestic funding conditions will give way to loosening in the last quarter of the year, while the loosening in foreign funding conditions will continue to strengthen.