Turkish Central Bank revises reserve requirement regulation


The Turkish Central Bank revised its reserve requirements regulation on Saturday in a move to strengthen the macroprudential policy toolkit.

Reserve requirements, which used to only be applied to the liability side of balance sheets, will now be applied to asset sides as well, the bank said in a statement.

Turkish lira-denominated commercial cash loans given by lenders and financing companies will be subject to reserve requirements, the bank said, adding that some loans would be excluded from the measure.

“Commercial loans, which have been extended in four-week periods since April 1, shall be subject to a reserve requirement of 10% of the said loans during the maintenance periods of four weeks,” it explained.

For banks with a loan growth rate above 20% by May 31, 2022 compared to end-2021, the difference between their outstanding loan balances on a given date will be subject to reserve requirements of 20% of this difference, for a period of six months, it added.

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