Financial Accounts Report 2023- IV. Quarter

Summary

According to sectoral financial balance sheets, resident sectors’ total financial assets and liabilities at end-quarter amounted to TRY 81.8 trillion and TRY 88.6 trillion, respectively. Below is a summary of developments pertaining to the fourth quarter of 2023:

• The ratio of the difference between the total financial assets and liabilities (financial net worth) of the Turkish economy to gross domestic product (GDP) increased by 4.2 points quarter-on-quarter to 26.1%.
• According to net financial transactions conducted by sectors, the total economy, which was a net lender of 1% of GDP in the previous quarter, became a net borrower of 0.4% of GDP in the fourth quarter.
• An analysis of the domestic economy’s financial balance sheets by sectors reveals that the total economy was a financial borrower, households and the rest of the world were creditors, and non-financial corporations and the general government were debtors. Meanwhile, due to their financial intermediation activities, financial corporations generated a near-balanced net financial position.
• Among households' financial assets, currency and deposits stand out with a share of approximately 66%, and almost all liabilities are composed of loans.
• Financial assets and liabilities of non-financial corporations were driven by other accounts receivable and other accounts payable items, which are composed of corporates' commercial transactions with each other, with 65% and 50% shares, respectively.
• A cross-country comparison of indebtedness ratios for all sectors reveals that the total debt of resident sectors was low in Türkiye. In the last quarter of 2023, the ratio to GDP of total debt in the form of loans and debt securities was 105%, down from the previous quarter.