Banks channel largest share of loans to manufacturing sector

ISTANBUL

Türkiye’s banking sector extended the highest volume of loans to the manufacturing industry as of the end of August, according to data from the Banking Regulation and Supervision Agency (BDDK).

Total cash loans, including non-performing loans, rose from 16.34 trillion Turkish Liras at the end of December 2024 to 21.09 trillion liras in August 2025, marking an increase of nearly 30 percent in just eight months.

The manufacturing sector accounted for the largest share, with 4.96 trillion liras in loans, representing 22 percent of the total. Within manufacturing, the metal industry received the most financing at 830.1 billion liras, followed by textiles with 685.7 billion liras and food, beverages and tobacco with 602 billion liras.

The second-largest recipient of loans was the wholesale and retail trade sector, including motor vehicle services and household goods, which secured 2.42 trillion liras, or 11 percent of total lending. Of this, 1.4 trillion liras went to wholesale trade and brokerage, 704 billion liras to retail trade and personal goods and 318 billion liras to motor vehicles and fuel sales.

From January to August, the sector with the fastest proportional growth in lending was defense, public administration and compulsory social security, which saw a 45.5 percent increase. No sector recorded a decline in credit volume during the period.

Small and medium-sized enterprises (SMEs) also remained a key focus of lending. Banks extended 5.39 trillion liras in loans to SMEs, including 1.44 trillion liras to micro businesses, 1.49 trillion liras to small enterprises and 2.48 trillion liras to medium-sized firms.