Central Bank Increases SME Loans Growth Limit to 5 Percent
Seeking to strengthen macrofinancial stability, the Central Bank has adjusted required reserves and SME loan growth limits.
The Central Bank of the Republic of Turkey has amended the required reserve application and updated the SME loan growth limit in order to support macrofinancial stability and banks' liquidity management.
New Limit for SME Loans
The Central Bank of the Republic of Turkey implemented a new regulation on loan growth rates with the Press Release on the Macroprudential Framework it published.
Growth Limit Set at 5 Percent
In accordance with the official statement, the SME loan growth limit, previously at 4.5 percent, was raised to 5 percent.
Blocked Placement Ratios Reduced
Within the scope of the decisions taken, it became official that reductions were also made in the blocked placement ratios applied to Turkish lira required reserves.
Ratios According to Bank Assets
The blocked placement ratios were reduced from 40 percent to 35 percent for banks with a balance sheet asset size of over 500 billion liras.
Banks Between 100-500 Billion Liras
For banks with a balance sheet asset size between 100 and 500 billion liras, the said ratio was lowered from 30 percent to 15 percent.
Liquidity Management Objective
It was reported that the primary objective of these new policies implemented is to support banks' liquidity management and protect macrofinancial stability.