Commercial loan defaults rise in Türkiye
Data published by Türkiye's Banking Regulation and Supervision Agency (BDDK) revealed a significant increase in the non-performing loan (NPL) ratio for commercial loans over the past two years.
After reaching a low of 1.4% in 2024, the ratio climbed to 2.5% as of October 2, 2026, marking an increase of 1.1 percentage points. Historical figures show that the ratio stood at 2.7% in 2018 before rising sharply during 2019–2020 to a peak of 6.4%. A downward trend followed and continued until 2024, but the past two years have seen a renewed increase. The latest figures indicate that the share of non-performing loans in the banking sector's commercial loan portfolio is once again trending upward.
Despite the increase, the current NPL ratio remains 0.6 percentage points below its 10-year average of 3.1%. This suggests that the deterioration in commercial loan quality has not yet reached the elevated levels seen in previous years, although the increase since 2024 is being closely monitored. A rising NPL ratio is an important indicator for assessing banks' credit risks and loan-loss provisioning policies. However, the data alone do not explain the underlying causes of the increase. Looking ahead, commercial loan repayment performance, developments in non-performing loans, and the banking sector's overall asset quality will remain key indicators of financial stability.
Comments