Turkey Links Bank Required Reserve Rates to Loan Growth

Bloomberg Quint | Aug 19, 2019 at 7:27 PM
  • The Turkish central bank unveiled regulatory changes that determine the amount of cash lenders have to put aside as reserves depending on how much credit they extend.
  • Required reserve ratios for banks with loan growth of 10% to 20% will be set at 2% — with some exceptions — while remaining unchanged for other banks.
  • The current remuneration rate of 13%, applied to mandatory lira-denominated reserves, is set at 15% for banks with 10%-20% loan growth and at 5% for others.