Turkey Raises SME Credit Growth Limit to 5%

Turkey Raises SME Credit Growth Limit to 5%

The Central Bank of the Republic of Türkiye (TCMB) has announced changes to its macroprudential policy affecting lending to small and medium-sized enterprises (SMEs). The credit growth limit for SMEs has been increased from 4.5% to 5%.

The decision was published by the Central Bank of Türkiye as part of adjustments to reserve requirement rules. The regulator said the changes are aimed at supporting macrofinancial stability and the banking system's liquidity management.

What Did the Central Bank Change?

According to the official TCMB announcement, two main decisions were made:

• the credit growth limit for small and medium-sized enterprises was increased from 4.5% to 5%;
• the coefficients for Turkish lira reserve requirements held in blocked accounts were reduced.

The TCMB said the changes to the reserve requirement system were introduced to support macrofinancial stability and improve liquidity management in the banking sector.

Finance Minister Şimşek Comments on the Measures

Türkiye's Minister of Treasury and Finance Mehmet Şimşek said the authorities continue to use macroprudential measures to support the financial system and the real economy.

We support the financial system and the real economy through macroprudential measures.

According to the minister, increasing the credit growth limit for SMEs and reducing the coefficients for blocked reserves should strengthen the banking liquidity management mechanism and make financing more accessible to small and medium-sized businesses.

Important: the change does not mean that loan interest rates have been reduced. It increases the permitted credit growth limit for SMEs under the existing regulatory framework.

Why Has the Limit Returned to 5%?

In May 2026, the TCMB reduced the eight-week Turkish lira credit growth limit for SMEs from 5% to 4.5%. The regulator has now raised the indicator back to 5%.

At the same time, the Central Bank continues to use restrictions on the growth of different credit categories as one of its macroprudential policy tools. These measures are applied in line with financial stability objectives and efforts to manage credit activity.

What Does the Change Mean for SMEs?

For small and medium-sized businesses, the decision potentially gives banks more room to expand their relevant lending portfolios. However, the specific terms and conditions for obtaining loans continue to be determined by individual banks.

The changes are relevant for businesses operating across different regions of the country, including Alanya, where small and medium-sized businesses play an important role in trade, services, tourism and related sectors.

More information about economic developments, the real estate market and current events in Türkiye is available from RestProperty.

Source: Central Bank of the Republic of Türkiye (TCMB).

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