Turkiye: Central Bank announced new macroprudential measures

The Central Bank announced new measures in the field of finance. An obligation to establish securities has been imposed on factoring companies. In addition, the possibility of establishing Turkish Lira required reserves in gold will expire on June 23, 2023.

The Central Bank announced new macroprudential measures. Accordingly, the interest rate applied to factoring receivables in Turkish lira was brought under the obligation to establish securities.

The duration of the securities establishment practices, which are applied according to the interest rates and loan growth ratios of the banks, has been extended until 29 December 2023.

The scope of some obligations requested from financial institutions has also been expanded. Funds obtained from foreign currency repo transactions with domestic real persons and real sector will be subject to securities establishment from now on.

Transactions made for the purpose of removing foreign currency liabilities from the balance sheet will also be evaluated within the same scope.

TL reserve requirement update

In addition, securities will be established for securities issued by the real sector and whose qualities are determined by the Central Bank.

On the other hand, the Central Bank also updated its reserve requirement system. It was emphasized that the gold-denominated facility operation for Turkish lira required reserves will be terminated as of June 23, 2023.

Source: Trthaber / Translated by Irem Yildiz

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