The Central Bank of the Republic of Turkey (CBRT) made a written statement on Macroprudential Measures.
In the statement, which stated that the implementation of Turkish lira-denominated securities establishment was started, “The Monetary Policy Committee announced to the public that the collateral and liquidity steps, whose evaluation processes were completed, will be put into use. In this context, with the Communiqué no 2022/20 published on 10 June 2022, The practice of establishing securities in Turkish lira over participation fund liabilities was initiated. Within the scope of this regulation, banks establish securities at rates determined according to their conversion targets to Turkish lira deposit/participation accounts. The first facility was realized on 29 July 2022. The Monetary Policy Committee announced on 18 August 2022 He stated that the growth rate of the loans and the meeting of the financing resources with the economic activity in accordance with its purpose are closely followed, and that the policy-loan interest gap, which has been significantly opened recently, has reduced the effectiveness of monetary transmission. In the end, the Board shared with the public that the macro prudential policy set will be further strengthened in order to support the effectiveness of the monetary transmission mechanism, and that the credit, collateral and liquidity policy steps whose evaluation processes have been completed will continue to be used.
The following statements were used in the continuation of the statement:
“For the loans subject to reserve requirements stated in the announcement dated April 23, 2022: The replacement of the required reserve facility, which is applied at the level of 20 percent, with a 30 percent security facility for banks in order to increase the efficiency of the application, as of December 30, 2022, 10 percent loan facility compared to July 29, 2022. It has been decided that a security amounting to the amount of the loan exceeding the growth rate will be established for one year, and that the excluded loan types will be subject to the establishment of securities if they are not used against expenditure.In addition, the annual compound reference rate published by the Central Bank for commercial loans to be extended from the date of publication of the communiqué until the end of 2022. It was stated that it was decided to establish securities at the rate of 20 percent of the loan amount to be extended with an annual compound interest rate of 1.4 times, and 90 percent of the loan amount to be extended with an annual compound interest rate of 1.8 times.
Source: Cumhuriyet Gazetesi – Gündem by www.cumhuriyet.com.tr.
*The article has been translated based on the content of Cumhuriyet Gazetesi – Gündem by www.cumhuriyet.com.tr. If there is any problem regarding the content, copyright, please leave a report below the article. We will try to process as quickly as possible to protect the rights of the author. Thank you very much!
*We just want readers to access information more quickly and easily with other multilingual content, instead of information only available in a certain language.
*We always respect the copyright of the content of the author and always include the original link of the source article.If the author disagrees, just leave the report below the article, the article will be edited or deleted at the request of the author. Thanks very much! Best regards!