Turkey: Methodological Information On Bank Loans

Transcription

1. Methodological Information on “Bank Loans Tendency Survey” Statistics Department Real Sector Data Division
2. Statistics Department Contents I- Objective ............................................................................................................................................. 3 II- Framework ........................................................................................................................................ 3 III- Scope................................................................................................................................................ 3 IV- Data Compilation Method .............................................................................................................. 4 V- Classifications .................................................................................................................................... 4 VI- Definitions ........................................................................................................................................ 4 VII- Calculations .................................................................................................................................... 5 VIII- Publication ..................................................................................................................................... 5 IX- Revision Policy ................................................................................................................................. 5 2
3. Statistics Department I- Objective “Bank Loans Tendency Survey” aims to give quarterly information about the loans to non-financial enterprises and households extended by banks, to monitor not only the factors affecting credit standards, loan demand and supply, but also the realized or expected changes in the loan demand and the factors causing these changes. II- Framework The survey covers top 15 banks, which have the largest shares in the loan market, operating in Turkey and providing approximately 80 per cent of the total loans in the sector. These banks consist of one public, nine private and five foreign banks. III- Scope The survey is composed of two main parts: The loans to enterprises (non-financial institutions) and the loans to consumers (household). In both parts of the survey, banks are asked about the standards applied to credits and credit limits in the approval process, terms and conditions for credits the change in the direction of the loan demand in the last quarter and the degree of significance of the factors expected to be influential therein. Additionally, banks’ forecasts regarding the credit standards and the loan demand for the following quarter are asked. In addition to credit standards and overall tendency of the loan demand for the loans to enterprises, terms of loans (long/short term), size of the enterprises (small and medium size enterprises/large enterprise), direction of the change in determinants of the size of the loan or the credit limit and the type of money (TL/FX loans) are also questioned for loans to enterprises. Questions for loans to households are answered separately for the housing loans, vehicle loans and other consumer loans. Questions regarding the changes in international funding costs and other terms and conditions for international funding are also included in the questionnaire to monitor the factors affecting funding conditions in international markets. Survey questions are designed not to include quantitative information about credits, but to show the quarterly changes in the banks’ tendency to extend loans and the direction of the loan demand besides the expectations for the next quarter. Survey answers for credit standards and the direction of the change in credit terms and conditions vary among “tightened considerably/will be tightened”, “tightened a somewhat/will be tightened”, “remained basically unchanged/will remain basically unchanged”, “eased somewhat/will be eased” and “eased considerably/will be eased. Answers for loan demands are chosen among “decreased considerably/will decrease”, “decreased somewhat/will decrease”, “remained basically unchanged/will remain basically unchanged”, increased somewhat/will increase” and “increased 3
4. Statistics Department considerably /will increase”. Regarding the factors affecting credit standards and demand, banks choose one of the following answers: “contributed considerably to tightening/decreasing”, “contributed somewhat to tightening/decreasing”, “contributed to basically unchanged credit standards”, “contributed somewhat to easing/increasing” and “contributed considerably to easing/increasing”. IV- Data Compilation Method Responses to the survey are received by the second week of the last month of the reference quarter via the CBRT web site. V- Classifications Classifications are based on the sector of “64- Financial and Insurance Activities”, and its sub-sectors “64.19- Other monetary intermediation” defined by NACE Rev.2. VI- Definitions Consumer Loans: It consists of housing loans, vehicle loans and other loans to consumers (personal and other loans). Credit Standards: Credit standards are the regulations and criteria of the banks shaping their own credit policy. These are written or unwritten regulations and criteria determining acceptability of the credit, sectoral, regional and geographical preferences, acceptability of the collateral or rate of return for consumer loans and the expected return. Credit standards contain both price and non-price terms and conditions. Terms and Conditions Applied to Loans: Terms and conditions applied to loans are divided into two parts as price and other situations and conditions. Price is defined as the profit mark-up from the loans and the banks are questioned for the change of their price policy of the “average” and “riskier loans”. Other situations and conditions include the conditions of contract such as fees and bank charges except the interest, collateral and term conditions and these conditions vary among loan types. Net Percentage Change: For credit standards, it refers to the difference between the sum of the percentages for (eased somewhat + eased considerably) and the sum of the percentages for (tightened somewhat + tightened considerably). However, it refers to the difference between the sum of percentages for (increased somewhat + increased considerably) and the sum of the percentages (decreased somewhat + decreased considerably) for the questions related to the demand for loans. For example, net percentage change of credit standards is calculated by subtracting the 4
5. Statistics Department rate of the banks that tightened standards from the rate of the banks that eased standards compared to the previous quarter . As a result, this rate captures the rate of banks that reported in that direction rather than the rate of change in standards or loan demand. To illustrate, a net percentage change of -25 in the business credit standards implies that the 25 percent of the banks tightened the standards. VII- Calculations Banks’ responses are captured in the survey results through weighting. The weight assigned to a bank for a specific loan type is the percentage share of the loan amount extended by that bank within the total amount of the respective loan type. By weighting the responses, the survey aims to reflect the market-determining effect of the responses of the banks, which have greater market shares in the respective loan type. Loans to enterprises are weighted on the aggregate amount of enterprise loans, loans to consumers are weighted separately as total consumer loans, housing loans, vehicle loans and other consumer loans. Credit cards are excluded from the scope of the survey and the weights. For each survey period, weights are updated on the basis of the credit volume for the last month of the preceding quarter. For each survey period, the weights are revised based on the total credit volume of the oneyear period preceding the survey period. VIII- Publication Survey results are released in the second week following the end of the reference quarter. The data release calendar is available at the CBRT web site under the menu “Statistics/Data Release Calendar”, and aggregate results of the survey are released under the menu “Statistics/Tendency Surveys/Bank Loans Tendency Survey”. IX- Revision Policy Results are not revised. 5