The Central Bank of the Republic of Turkiye (CBRT) sent the implementation instruction to the banks regarding the regulations, which it shared with the public in its Press Release on Currency Protected Accounts on 20 August.
According to the implementation instruction of the Central Bank of the Republic of Turkiye, the Central Bank has set the target of transition to TL time deposits as at least 10% for real person foreign currency conversion accounts, at least 50% for TL currency protected deposits, and at least 32 days for TL deposits to be passed.
With the implementation instruction, it was also explained how banks are expected to reach the target of 95% renewal in conversion accounts and transition to TL.
Accordingly, banks will be able to meet their 95% target by renewing their real and legal person conversion accounts or switching from foreign currency conversion accounts to TL time deposits of 32 days or more. In addition, new conversion accounts opened for real persons were allowed to be counted towards the target up to a maximum of 10% of the due conversion amount.
Securities establishment
Securities establishment according to the interest/profit share ratio will be implemented as 1.4 times the reference rate in export and investment loans, 1.8 times in other TL commercial loans and 2 times in general purpose loans, while maintaining the previously valid coefficients.
The difficulties created by the differences in the business models of participation banks were taken into account in this regulation. In order for the said institutions to reach the targets set for the transition to TL and TL share, the period that they are obliged to regulate is determined as April 2024. Thus, it was possible for them to reach the target at the same level in a longer period of time.
The Central Bank also extended the exemption period for the loans extended in the earthquake zone from 31 August 2023 to 1 January 2024.
Source: Trthaber / Prepared by Irem Yildiz