Reserve requirement step from the Central Bank

Within the scope of additional tightening steps supporting the tight monetary policy stance of the Central Bank of the Republic of Turkey (TCMB), a required reserve based on credit growth will be established. The TCMB’s Communiqué on Amendments to the Communiqué on Required Reserves was published in the Official Gazette. Accordingly, the required reserve in TL for the portion of the loans determined by the Central Bank exceeding the 2 percent monthly growth rate will be blocked for 1 year. In its announcement regarding additional tightening steps, the TCMB stated that in addition to the security facility, work continues to establish required reserves based on credit growth in order to increase the effectiveness of the application regarding credit growth limits. In the announcement, it was reported that within the scope of the securities facility based on credit growth, it was decided to reduce the monthly growth limit of 2.5 percent for TL commercial loans to 2 percent, to reduce the monthly growth limit of 3 percent for consumer loans to 2 percent, and to maintain the 2 percent limit for vehicle loans. In the summary published regarding the meeting of the CBRT Monetary Policy Committee on February 22, it was stated that "In case of a significant and permanent deterioration in the inflation outlook, the monetary policy stance will be tightened. In case of unforeseen developments in credit growth and deposit interest, the monetary transmission mechanism will be supported."