The Turkish Central Bank took new steps today, Sunday, in line with its objectives to increase the effectiveness of market mechanisms, after raising interest rates to 15% from 8.5% this week. It confirmed that "the regulations on the maintenance of securities in Turkey have been simplified to support overall financial stability."
In a statement, it mentioned that "the decision is part of the policies announced following the recent Monetary Policy Committee meeting, and the simplification process will continue gradually."
The maintenance rate for securities has been reduced to 5% from 10%.
With the new regulatory rules, the securities that banks must maintain now range between 3% and 12% of their lira deposits, compared to the previous range of 3% to 17%.
The new regulations also stipulate that banks with lira deposits accounting for less than 57% of total deposits will have to hold an additional 7 percentage points of securities.
