Akbank TAS (AKBNK), the Turkish lender part-owned by Citigroup Inc., and Yapi & Kredi Bankasi AS (YKBNK) slumped the most this month after the nation’s banking regulator took steps to rein in consumer loans and credit card spending.
Akbank fell 3.2 percent, the steepest drop on a closing basis since July 26, to 7.20 liras at 4:06 p.m. in Istanbul. Yapi & Kredi, the bank co-owned by Koc Holding AS (KCHOL) and UniCredit SpA (UCG), slid 2.9 percent to 4.37 liras, poised for the biggest loss since July 31. The 16-member banking index declined 2.4 percent, heading for the lowest close since July 11, while the Borsa Istanbul National 100 index retreated 1.8 percent.
Turkey’s Ankara-based Banking Regulation and Supervision Agency announced measures after markets closed on Aug. 16 to “control the rise in consumer loans” and “increase the share of commercial loans in total lending,” it said in a statement on its website. The level of credit-card loans is highest at Akbank and Yapi & Kredi among the six largest publicly traded banks, Ekspres Invest analysts Cihan Saraoglu and Oguzhan Evranos said in an e-mailed report.
The measures “pose a greater risk for banks in which the share of credit cards in total loans is higher,” Barkin Yalcin, an analyst at Meksa Investment in Istanbul, said by phone today.
The steps taken by the regulator include reclassifying overdraft accounts and credit card loans as consumer loans so they can be subjected to general provisioning rules.
The extended definition of consumer loans means they will make up 39 percent of all loans for Akbank and 36 percent each for Yapi & Kredi and Turkiye Garanti Bankasi AS (GARAN), the analysts at Ekspres said.
Garanti’s shares fell 2.7 percent to 7.30 liras, declining for the third day.
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