Turkish central bank changes reserve levels to encourage lending

18 February, 2019 12:00 AM printer

Istanbul: The Turkish central bank changed its reserve rules to boost credit growth amid signs of a deepening slowdown in the Middle East’s largest economy.

The lira reserve-requirement ratios have been reduced by 100 basis points for deposits and participation funds with maturities of up to a year and for other liabilities with maturities up to and including three years, and by 50 basis points for all other liabilities, the central bank said in a statement on Saturday. Banks will also now be able to hold 10 per cent of their reserve requirements in gold, rather than 5 per cent, report agencies.