The analysis of Total Non-Performing Loans Net of Provisions to Capital in Turkey shows an upward trend. Specifically, in 2023, this metric stood at 6.35 units. There has been a noticeable increase from 2022 to 2023 by approximately 3.59%. Over the last two years, we see an upward trend with a cumulative growth of around 12.69%. Over the last five years, the Compound Annual Growth Rate (CAGR) stands at about 2.41%, projecting a steady yearly increase.
Forecast data indicate continued growth, reaching 7.4 units by 2028, representing a 12.64% increase over the next five years. This suggests a consistent rise in non-performing loans net of provisions to capital, signaling potential systemic issues in the banking sector's asset quality.
Future trends to watch for include focusing on macroeconomic factors like inflation and currency fluctuations, regulatory changes, and the banking sector's overall health. Monitoring these will be crucial for understanding and mitigating rising non-performing loans.
