Perceived ease in credit regulations by banks during the third quarter
In the banking sector of Türkiye, the Central Bank of the Republic of Türkiye (CBRT) has released the Bank Loans Tendency Survey for the third quarter of 2025. The survey provides insights into the anticipated changes in credit standards for various loan categories, including business and retail loans.
For business loans, Turkish banks expect a **modest easing of credit standards** in Q3 2025. However, an exception is made for foreign currency (FX) loans and loans extended to large enterprises, where credit standards are expected to **remain tight or unchanged**. This indicates that while general business lending conditions may become somewhat easier, caution remains with FX-denominated and large firm loans.
In contrast, for retail credit, standards are expected to remain **largely unchanged** in the third quarter. Previously in Q2, consumer loan standards had eased, but mortgage and auto loan standards were stable, and this cautious stance is set to continue through Q3.
The easing expectations in loan standards are linked to improving domestic and external funding conditions anticipated in Q3 2025. While domestic funding improved in Q2 and external funding tightened slightly, banks foresee **clear easing in both domestic and external funding environments** in Q3, which supports the overall easing trend in credit standards except in the noted exceptions for FX and large enterprise loans.
It's worth noting that the stability in housing and auto loan standards was a notable aspect of the second quarter of 2025. Banks also anticipate a notable easing in international funding conditions in the third quarter of 2025. This expectation follows a period of selective tightening and stability in lending practices during the second quarter of 2025.
However, no information about changes in credit standards for foreign currency loans or loans to large enterprises was provided for the third quarter of 2025. Similarly, no significant changes were reported in housing and auto loan standards during the second quarter of 2025, and there were no expectations for significant changes in these loan categories for Q3 2025.
This expected shift in funding conditions could enhance liquidity in the third quarter of 2025. The survey did not show any expectations for significant changes in credit standards for all types of retail loans in the third quarter of 2025.
In summary, the credit landscape in Türkiye for Q3 2025 presents a slightly more accommodative environment, with a modest easing in credit standards for most business loans and stable retail loan standards. However, caution remains for FX loans and loans to large enterprises, with no anticipated easing in credit standards for these categories.
In the context of business loans, Turkish banks anticipate a modest easing of credit standards in Q3 2025, yet credit standards for foreign currency (FX) loans and loans extended to large enterprises are expected to remain tight or unchanged. For retail credit, standards are projected to remain largely unchanged in the third quarter.
