Turkey Revises Banks’ Reserve Requirements to Check Loan Growth
- Changes to be effective from calculation date of May 27
- Central bank announces revision of rules in statement
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Turkey’s central bank revised some reserve requirement rules for banks in an effort to keep loan growth in check and encourage conversion of foreign exchange into the local currency.
The monetary authority said banks’ local currency-denominated commercial cash lending -- excluding that which involves small and medium-sized enterprises, and export and agricultural loans -- will be subject to reserve requirements.