Turkey’s government is preparing to provide a boost to the economy through faster credit growth by tweaking some reserve rules for commercial lenders, according to an official with direct knowledge of the matter.
Authorities will set required reserves depending on how much banks lend, pushing through the changes in an omnibus economy bill that’s being discussed in parliament, said the person, who asked not to be identified. The legislation also allows the central bank to determine mandatory reserves for all balance-sheet assets and liabilities, including derivative products such as swaps, the official said.
