Net stable funding ratio of banks will be calculated

The "Regulation on Calculation of Net Stable Funding Ratio of Banks" prepared by the Banking Regulation and Supervision Agency was published in the Official Gazette. The purpose of the regulation was stated as determining the procedures and principles to ensure that banks provide stable funding in order to prevent the deterioration of their liquidity levels due to the funding risk that they may be exposed to on a consolidated and non-consolidated basis in the long term. The net stable funding ratio will be calculated on a consolidated and non-consolidated basis by dividing the current stable fund amount by the required stable fund amount. The current stable fund will represent the part of the banks' liabilities and equity capital that is expected to be permanent; the required stable fund will represent the part of the banks' on-balance sheet assets and off-balance sheet liabilities that are expected to be re-funded. The three-month simple arithmetic average of the consolidated and non-consolidated net stable funding ratio calculated monthly as of the equity calculation periods cannot be less than one hundred percent as of the March, June, September and December periods. The Board will be authorized to establish a minimum rate for the net stable funding rate calculated on a consolidated and non-consolidated basis in foreign currency, with the approval of the Central Bank of Turkey, and to determine the procedures and principles regarding the calculation and achievement of this rate. The Board may determine more prudent procedures and principles on a bank or bank group basis, taking into account funding risk levels, with the approval of the Central Bank of Turkey. Development and investment banks will be exempt from meeting the minimum rates specified in the third paragraph, unless otherwise determined by the Board.