New regulation from the CBRT on credit growth: Limits raised

The Turkish Central Bank (TCMB) raised the eight-week growth limit on consumer and vehicle loans to 3.5% from 3%, and lifted growth caps on Turkish lira loans to SMEs and other businesses by 0.5 percentage points. It also decided that banks and financing companies must make lira-denominated interest or compensation payments on their long-term non-deposit liabilities. The move loosens the macroprudential curbs the regulator has used to cool credit growth and support the lira. It signals a selective easing of lending restrictions rather than a broad policy shift. Investors will watch whether faster loan growth feeds through to inflation and how the TCMB calibrates the limits at its next reviews.