The Turkish Central Bank said on Saturday it revised regulations on banks’ reserve requirements, applying them to the asset side of balance sheets in order to strengthen its macroprudential policy toolkit.
Reserve requirements have until now been applied to the liability side of balance sheets.
The move was “in line with its main objective of price stability and in the scope of efforts towards supporting financial stability and encouraging liraization,” the bank said in a statement.
It said banks’ and financing companies’ lira-denominated commercial cash loans will be subject to reserve requirements, excluding small- and medium-sized company loans, tradesmen loans, export and investment loans and agricultural loans.
Commercial loans extended in four-week periods from April 1, 2022, will be subject to a reserve requirement of 10 per cent of those loans during the four-week maintenance periods, the bank said.
For banks with a loan growth rate above 20 per cent by May 31, 2022 compared to Dec. 31 2021, the difference between their outstanding loan balances on March 31, 2022 and Dec. 31, 2021 will be subject to reserve requirements of 20 per cent of the difference, for a period of 6 months.