KKM Stock Declines for 72 Consecutive Weeks
Minister of Treasury and Finance Mehmet Şimşek has shared his thoughts on the latest data regarding KKM in a recent social media post.
According to Şimşek, the KKM stock has been on a continuous decline for 72 weeks, dropping from its peak value of 3.4 trillion lira to 1.1 trillion lira. The share of KKM in total deposits has also decreased significantly from 26.2 percent to 5.9 percent. In order to strengthen macro financial stability and increase confidence in the lira, Şimşek emphasized the importance of continuing policies that will achieve these goals.
Furthermore, the Banking Regulation and Supervision Agency’s weekly bulletin revealed that the total credit volume of the banking sector increased by 57 billion 395 million liras. However, total deposits, including interbanks, decreased by 337 billion 133 million liras.
Consumer loans have seen an increase, reaching 2 trillion 19 billion 428 million liras, with a significant portion consisting of housing loans, vehicle loans, and consumer loans. Installment commercial loans have also risen to 2 trillion 215 billion 51 million liras.
On the other hand, non-performing receivables in the banking sector have increased, reaching 293 billion 695 million liras, with a special provision of 222 billion 92 million liras allocated for these receivables. The legal equity capital of the banking system has decreased, while the KKM balance has also dropped to 1 trillion 108 billion 810 million lira.
Overall, the decrease in KKM account balances continues, highlighting the need for measures to stabilize the financial sector and restore confidence in the market.
