SME Loans Have Been Falling for 2 Weeks: Is the Economy Signaling a Slowdown?
While Turkey has been trying to return from the “interest cause, inflation result” or in other words “low interest, low inflation” oriented economic policies for a while under the leadership of Mehmet Şimşek, the credit side, which is one of the important indicators of the economy’s vitality, has been closely followed by both economic actors and investors. .
Considering the importance of loans in the economy, a possible slowdown in loans can also be perceived as a signal of a slowdown in the economy.
According to the data released by the Banking Regulation and Supervision Agency for the week of July 7, a slowdown was observed in commercial loans, albeit partially, while the contraction in SME loans drew attention.
According to the published data, SME loans, which declined in the week of June 27, continued to contract in the week of July 7. Between 27.07.2023 and 07.07.2023, a 1.26 percent contraction was observed in the total loans given by the banking sector to SMEs.
It is not possible to say exactly whether the decrease in SME loans is due to banks or whether there is a lack of appetite in Small Medium and Large Enterprises (SMEs) due to high interest rates on loans. However, according to the information obtained from the market, it is understood that banks do not have much appetite for lending.
It is difficult to say that the periodic short-term contractions in loans clearly indicate a contraction in the economy. However, a contraction in SME loans, which is well above the contraction in commercial loans, may be an indicator of some economic problems.
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