Turkish central bank revises reserve requirement regulations

A money changer counts Turkish lira bills at a currency exchange office in central Istanbul, Turkey August 21, 2015. REUTERS/Murad Sezer/File Photo

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ISTANBUL, April 23 (Reuters) – Turkey’s Central Bank said on Saturday it had revised regulations on banks’ reserve requirements, applying them to balance sheet assets to strengthen its macroprudential policy toolkit.

Reserve requirements have so far been applied to balance sheet liabilities.

The move was “consistent with its primary objective of price stability and as part of efforts to support financial stability and encourage reading,” the bank said in a statement.

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He said lira-denominated commercial cash loans from banks and finance companies will be subject to reserve requirements, excluding loans to small and medium enterprises, loans to traders, export loans and investment and agricultural loans.

Commercial loans extended in four-week periods from April 1, 2022 will be subject to a reserve requirement of 10% of such loans during the four-week maintenance periods, the bank said.

For banks with a loan growth rate of more than 20% as of May 31, 2022 compared to December 31, 2021, the difference between their outstanding loans as of March 31, 2022 and December 31, 2021 will be subject to reserve requirements of 20 % of the difference, for a period of 6 months.

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Reporting by Daren Butler; Editing by Kim Coghill

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