Breaking News
0

Turkish Central Bank Changes Reserve Levels to Encourage Lending

Stock MarketsFeb 16, 2019 03:50AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Turkish Central Bank Changes Reserve Levels to Encourage Lending

(Bloomberg) -- 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 percent of their reserve requirements in gold, rather than 5 percent.

The changes came two days after Governor Murat Cetinkaya told state media he was considering adjustments to the lira’s liquidity. He lowered the reserve-requirement ratios for lira and foreign-exchange deposits last year when the currency was in free fall. This reduction is targeting credit growth rather than currency stability.

The Turkish economy is on track to cap 2018 with two consecutive quarters of contraction, a technical recession, in a sign the lira’s crash and the ensuing jump in borrowing costs were very damaging. The economy may shrink for three quarters in a row through June this year, according to forecasts compiled by Bloomberg. Turkey’s fourth-quarter gross-domestic product report will be released on March 11.

Turkish Central Bank Changes Reserve Levels to Encourage Lending
 

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email