Central Bank updated credit growth limits and reserve requirement rules

The Central Bank of the Republic of Turkey (CBRT) has upwardly revised credit growth limits in order to support macrofinancial stability and the monetary transmission mechanism.

According to the macroprudential framework announcement published on the website of the Central Bank of the Republic of Turkey, growth limits on consumer and commercial loans were increased. The 8-week growth limit for personal and vehicle loans was raised from 3 percent to 3.5 percent.

While the limit on Turkish lira loans extended to SMEs was raised from 5 percent to 5.5 percent, the rate for Turkish lira loans extended to non-SME businesses was increased from 2 percent to 2.5 percent.

Additionally, it was decided to make interest or compensation payments in Turkish liras on required reserves established for banks' and financing companies' non-deposit liabilities in Turkish liras and foreign currencies with a maturity of longer than 1 year.