The banking sector is leaner and meaner and, as the economy recovered after 2001, has been in a position to take advantage of the demand for consumer loans, particularly for cars and white goods. This demand grew through 2004 and 2005 although there was also an increasing demand for housing loans and for loans for the commercial and small and medium-sized enterprise sectors.
BRSA figures for year-end 2005 suggest that consumer loans as a percentage of total loans have grown from about 14% in 2002 to more than 30% in 2005, with no hint of demand relaxing. Banks have also grown their Turkish lira balance sheets more rapidly than their US dollar ones as the yield and real interest rates on local currency business have historically been higher.
