TL 38.7 million in bank card spending during Ramadan, Eid.
ySTANBUL (CyHAN)- People in Turkey spent TL 38.7 million with their bank cards (credit and debit) during the holy month of Ramadan and the ensuing Eid al-Fitr holiday, according to figures from the Interbank Card Center (BKM) published on Tuesday.
The figure was slightly less than the amount spent during Ramadan and Eid in 2013. Installment payments during the same period totaled TL 8.4 million, down from last year's TL 10.6 million. The decline is likely due to a regulation imposed by the Banking Supervision and Regulation Agency (BDDK) in February of this year designed to limit the types of installment payments that can be made.
TL 3.5 million in online purchases was made with bank cards, accounting for 9 percent of all card purchases during the month of Ramadan.
"Card spending growth will be sustained in 2014 but due to [the aforementioned BDDK] regulation the speed of growth will slow compared to previous years. The slowdown has not led to increased savings, and consumer growth will continue with other payment methods, as we have observed from recent Turkish Statistics Institute [TurkStat] figures," said BKM General Manager Dr. Soner Canko in a statement on Tuesday.
Installment purchases dropped 14 percent in April year-on-year, following a surge in such purchases made prior to the BDDK regulation coming into effect on Feb. 1. The regulation banned installment purchases on certain items, including gasoline, food and jewelry.
Recent data from the Turkish Banking Union (TBB) show the number of people who failed to make their credit card and loan debt payments to banks increased by 25.4 percent to 645,474 in the first five months of this year compared to the same period of last year. This number was 514,712 in the January-May period of 2013. Among these bank customers, 380,180 failed to repay credit card debts, while banks could not collect personal loan debts from 265,294 people in the first five months. The number of non-performing personal loans was 28.5 percent higher in the January-May period of this year over a year ago.
(Cihan/Today's Zaman) CyHAN
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|Publication:||Cihan News Agency (CNA)|
|Date:||Aug 6, 2014|
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