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Bank loans extended by Turkey’s lenders were worth 1.83 trillion

Big banks are pulling back sharply from auto loans, helping drive a drop in car sales and raising fears the slump might deepen.
Fitch in December lowered its outlook performance for securitized subprime auto loans for 2017, even though it isn’t forecasting a broader economic slump.
The slowdown in loan volume marks a turnaround for the auto loan sector, where originations grew consistently in recent years.
Some banks, including regionals Fifth Third Bancorp and Citizens Financial Group Inc., are beginning to retreat from higher-quality “prime” auto loans as new risks emerge.
Annualized net losses on securitized subprime auto loans increased to more than 10% late last year, the highest level since February 2009, according to Fitch Ratings.

Turkey Plans
As it stated in

Bank loans extended by Turkey’s lenders were worth 1.83 trillion liras as of March, according to regulator data compiled by Bloomberg.
The legislation won’t restrict the type of loans that banks can securitize, he said.
Turkey is working on legislation to allow commercial lenders to securitize and sell all of their $515 billion of outstanding loans to investors, as the government seeks to boost credit and spur economic growth.
Turkey’s banks face a shortage of deposits that is driving up rates, which in turn makes much-needed investments more expensive, said Canikli, whose portfolio also includes Turkey’s banking regulator.
I presume banks would give an ear to what policy makers have to say about this,” Canikli said.

As it stated in

Banks Pull Back on Car Loans as Used-Auto Prices Plummet

Bank Car Loans

Big banks are pulling back sharply from auto loans, helping drive a drop in car sales and raising fears the slump might deepen.
The decline, the biggest for the San Francisco-based bank in at least five years, was part of a common refrain in quarterly announcements from…
Wells Fargo & Co., one of the largest U.S. auto lenders, last month reported a 29% fall in its auto loan originations for the first quarter from a year earlier.

 

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