Turkish deposit interest rates fall as central bank funding costs decrease

Deposit interest rates in Turkey are experiencing a downward trend following the Central Bank of the Republic of Turkey’s (TCMB) shift in funding structure. As the bank returns to weekly repo auctions, market funding costs have effectively decreased from approximately 40 percent to 37 percent.

This shift is impacting various banking institutions. For a 500,000 TL deposit over a 32-day term, interest rates vary across banks, with some offering daily account rates ranging from approximately 38 percent to 48 percent.

Business leaders have called for these reduced funding costs to be reflected in commercial loan interest rates to support the real sector. While public banks have announced interest rate reductions of two to three points on loans as of August 31, industry representatives emphasize that private banks should also pass these savings on to businesses to aid production, investment, and employment.