The economy management took measures on the side of individual loans to restrain the continuing high course of domestic demand. In this sense, the Banking Regulation and Supervision Agency (BDDK) made a new regulation regarding the number of credit card installments and the maturity limits for vehicle loans were also lowered. While financial leases were also regulated on the vehicle side, the BRSA decided to increase the risk weights of consumer credit cards and consumer loans with a separate regulation.
So, how effective are these measures taken by the BRSA to rein in domestic demand?
“We are not sure if it will work”
Three senior bankers, who evaluated the regulations to Bloomberg HT, stated that the measures taken on the vehicle side are serious, and that it is also critical to increase the risk weights in consumer loans.
Noting that they are not sure whether the measures taken will work and whether it will cause a slowdown in consumer loans, the bankers emphasized that July will give a clue to see if the measures will work.
“Prices increase in regulated product groups”
Underlining that the practices are restrictive, the bankers stated that the prices will go up in the product groups that are subject to regulation. The bankers, who do not think that the regulations will affect the exchange rate much, underlined that they can only partially affect the effect of the current account deficit on the exchange rate.