Turkey central bank to take steps to curb consumer loan growth – report

Turkey’s central bank is planning to take steps to pare growth in consumer loans, Reuters reported, citing unidentified sources.

The central bank will adjust required reserve guidelines for banks, a measure that will also help curb demand for imports, the two sources said, according to a report by Reuters on Thursday.

Credit growth in Turkey is heading towards 50 percent annually, one of the people said, citing demand, pending transactions, an upward trend and so-called base effects. Consumer loan growth is currently running at 34 percent, Reuters said.   

The second source said the measure aims to curtail increasing demand for some imported goods.

The central bank’s move would not be intended to limit economic growth and is seen by the Turkish authorities as a “macroprudential measure,” said the two sources, who requested anonymity.