The Central Bank’s new regulation has been published in the Official Gazette. According to the latest announcement from the Central Bank, changes have been made to the reserve requirement framework. The decision has been published in the Official Gazette. A Communiqué amending the Communiqué on Required Reserves issued by the Central Bank of the Republic of Turkey was published and entered into force.
The Communiqué on Amendments to the Communiqué on Required Reserves by the Central Bank of the Republic of Turkey has been published in the Official Gazette and is now effective. Under the new text published today, the reserve requirement ratios for foreign currency liabilities have been adjusted. The required reserve ratio for sight, notice, up to 1 month, up to 3 months, up to 6 months and up to 1 year term deposits and participation funds (excluding deposits/participation funds of banks abroad) has been raised from 19% to 22%. For liabilities with maturities of 1 year and longer, the required reserve ratio for foreign currency liabilities has been increased from 15% to 18%.
Required Reserve Ratios for Foreign Currency Liabilities
The required reserve ratios for foreign currency liabilities are set out below.
| Deposits / Participation Funds (excluding deposits / participation funds of banks abroad) | |
| Sight, notice, up to 1 month, up to 3 months, up to 6 months and up to 1 year | 22% |
| 1 year and longer | 18% |
| Borrowers’ Funds | 22% |
| Other Liabilities (including deposits / participation funds of banks abroad) | |
| Up to 1 year (including 1 year) | 24% |
| Up to 2 years (including 2 years) | 19% |
| Up to 3 years (including 3 years) | 14% |
| Up to 5 years (including 5 years) | 10% |
| Over 5 years | 8% |
For banks meeting the specified conditions, the following rates will apply to their foreign currency liabilities;
| Deposits / Participation Funds (excluding deposits / participation funds of banks abroad) | |
| Sight, notice, up to 1 month, up to 3 months, up to 6 months and up to 1 year | 15% |
| 1 year and longer | 11% |
| Borrowers’ Funds | 15% |
| Other Liabilities (including deposits / participation funds of banks abroad) | |
| Up to 1 year (including 1 year) | 19% |
| Up to 2 years (including 2 years) | 14% |
| Up to 3 years (including 3 years) | 9% |
| Up to 5 years (including 5 years) | 5% |
| Over 5 years | 3% |
This amendment updates the reserve ratios for various foreign currency liability maturities. Banks should review the Communiqué text in the Official Gazette for the full legal wording and implementation details.