NEWS Finance        30/11/2020

BDDK eases foreign financial institutions access to Turkish lira

The Turkish banking watchdog, the Banking Regulation and Supervision Agency (BDDK), has decided to make it easier for foreign financial institutions to access Turkish lira by increasing the limit on the amount of placements, deposits and repos that Turkish banks can make to foreign financial institutions from 0.5% to 2.5% of their capital.


BDDK’s press release regarding this decision is as follows:


“As it was stated on the press release dated 05.05.2020, according to the Board of the Banking Regulation and Supervision Agency resolution dated and numbered 05.05.2020-9010, the total amount of TL placements, TL deposits, TL repo and TL loans to be made by banks to non-resident financial institutions, including the transactions with their non-resident financial subsidiaries and affiliates which are subject to consolidation and their branches abroad, have been limited not to exceed the 0.5% of banks' most recently calculated regulatory capital.


In order to contribute the well-functioning of the markets, upon its decision dated and numbered 27.11.2020-9273, the board has decided that:

· The above-mentioned limitation shall be applied as 2.5% instead of 0.5% and,

· The overdraft TL loans, which are paid within the same day given by banks to non-resident financial institutions mentioned above, shall not be subject to this limitation.”


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