Turkey Eases Key Banking Ratio in Bid to Normalize Lending

Turkey took another step to slow lending to businesses and consumers after a massive credit boom worsened external imbalances and hit the lira.

The banking regulator, known as BDDK, said Monday that its asset ratio formula, which compels banks to extend more loans, will be reduced by 5 percentage points to 90% for commercial lenders, and to 70% for Islamic lenders.