Macroprudential regulation

The Central Bank has announced that it will scrap the implementation regarding securities maintenance based on loan growth while raising the monthly maximum interest rates to be charged for credit cards. 

The bank said it is considering terminating the securities maintenance practice "in a short while."

The Central Bank has changed reserve requirement ratios in a move that aims to encourage shift to Turkish Lira deposits.

The reserve requirement ratios for FX-protected accounts with maturities up to six months will be reduced from 30 percent to 25 percent, the bank announced on Jan. 30.

The steps taken within the scope of monetary tightening and the simplification of the macroprudential framework are showing their positive effects, Central Bank Governor Hafize Gaye Erkan has said.

Turkish government bonds are becoming more attractive following the Central Bank's monetary policy adjustment in recent months, BNP Paribas has said in a recent report.

Policy rates and local deposit rates have already adjusted sufficiently to provide positive ex-ante real rates versus inflation expectations, it said.

Refinancing pressures have reduced for Turkish banks, following the post-election policy shift that includes progress towards a more conventional policy mix, and normalization of monetary policy, as evidenced by banks' recent market access, Fitch has said in a recent report.

Türkiye's Central Bank has announced a measure aimed at simplifying its micro and macroprudential framework.

In a statement released on June 25, the bank recalled that the Monetary Policy Committee (MPC) said following the rate-setting meeting on June 22 that the existing micro and macroprudential framework would be gradually simplified, guided by impact analyses.

The Central Bank has announced a raft of new macroprudential measures as part of its liraization strategy.

The bank said in a statement on Jan. 7 that local banks in general have reached the 50 percent liraization target in deposits announced for 2022 and that the liraization target in deposits for the first half of 2023 was set at 60 percent.

Fighting inflation will be the government's top priority in the coming period, Treasury and Finance Minister Nureddin Nebati said, reiterating that effectively using monetary and macroprudential policies will be crucial to curb price increases.

The Turkish Central Bank revised its reserve requirements regulation on April 23 in a move to strengthen the macroprudential policy toolkit.

Reserve requirements, which used to only be applied to the liability side of balance sheets, will now be applied to asset sides as well, the bank said in a statement.

The International Monetary Fund (IMF) will keep financial sectors of seven countries, including Turkey, under spotlight this year, the global crisis lender said in a blog post on Feb. 4.