Increase in credit growth limits and reserve requirements by the Central Bank

The Central Bank of the Republic of Türkiye (CBRT), through its "Press Release on the Macroprudential Framework," has increased the eight-week growth limits for personal, vehicle, and commercial loans by 0.5 percentage points and implemented new regulations regarding reserve requirements.

With the new regulation introduced by the Central Bank of the Republic of Türkiye, the eight-week growth limit for personal loans extended to consumers has been raised from 3 percent to 3.5 percent. A similar adjustment was made for vehicle loans, with the growth limit set at 3.5 percent. The limit for Turkish lira loans extended to SMEs was increased from 5 percent to 5.5 percent, while the rate for Turkish lira loans to non-SME businesses was raised from 2 percent to 2.5 percent.

In addition to the increases in credit growth limits, the Central Bank also modified the reserve requirement practice, deciding to apply interest or compensation payments in Turkish lira for reserve requirements maintained by banks and finance companies against non-deposit liabilities in Turkish lira and foreign currency with maturities longer than one year. The CBRT stated that these regulations were implemented to support macro-financial stability and the monetary transmission mechanism.