The Central Bank of the Republic of Turkiye removed the minimum interest requirement for Turkish lira converted Exchange-Protected Deposit accounts.
The Central Bank of the Republic of Turkiye (CBRT) continues its steps to transform the banking system in a way that makes TL attractive.
With the change made in the application instruction, the minimum interest requirement in TL conversion rate protected accounts has been abolished. Thus, the way was opened for banks to give interest rates below the policy rate for TL converted exchange rate protected accounts.
While standard TL deposits will be supported with the change, the interest paid to EPD will not be attractive.
In EPD accounts where rates lower than the Central Bank’s policy interest are applied, if the exchange rate difference is higher than the interest or dividend to be paid by the bank but lower than the amount calculated with the policy interest, the entire difference will be covered by the bank.
If the exchange rate difference is higher than the amount calculated with the policy interest, the part of the support amount up to the amount calculated with the policy interest will be paid by the bank, while the above part will be paid by the Central Bank.
CBRT aims to make Turkish lira deposits attractive
The CBRT took a series of steps to make Turkish lira deposits attractive.
In August, the TL share ratio, which included exchange rate protected accounts in TL deposits in securities and required reserve practices, was abolished and replaced by a new TL share ratio, which did not consider exchange rate protected accounts as TL deposits and aimed to increase the share of TL deposits, which is the standard local currency, in total deposits.
In September, in line with the data showing that the transition to TL was accelerating, the TL share increase target, which was set as 2% per month for real persons, was increased to 2.5%. In addition, with the transition and renewal to TL, the TL share calculations were revised.
On the other hand, in order to ease the credit flow, the invoice exemption limit for export, investment and SME loans was increased from ₺50 thousand to ₺250 thousand.
Source: Trthaber / Prepared by Irem Yildiz