NEWS Finance        19/04/2020

Turkey's banking watchdog announces new asset ratio to boost lending

Turkey’s banking watchdog, the Banking Regulation and Supervision Agency (BDDK), announced yesterday on Saturday new regulations to push private banks to give more credit and purchase government bonds to support the economy during the coronavirus pandemic. The new regulation will be effective as of May 1st.

 

According to a statement released by BDDK, banks are required to maintain a new consolidated and individual asset ratio of at least 100% starting at the beginning of next month; otherwise. If they do not comply,  they will have to pay an administration fee. The ratio will be calculated by banks and will be reviewed weekly by the BDDK.

 

The sum of a bank’s loans, 75% of its securities portfolio and 50% of its central bank swap balances must exceed the sum of its Turkish lira deposits and 125% of foreign currency deposits, according to the new regulation. For participation banks, which follow Islamic banking regulations, the loans, securities and swaps should equal at least 80% of the deposits.



Turkey’s net minimum wage has been raised 21.56% to TL 2,825.90 (USD 380) as of 01.01.2021       Migration communication helpline 157 available for foreigners in Turkey       Read our homepage articles on developments in the Turkish economy       Turkey’s official annual inflation rate increases to 16.19% in March 2021       Turkey’s official unemployment rate jumps to 13.4% in February 2021       Read our BUSINESS section for latest sectoral and corporate news       Turkey’s population is 83,614,362 as of 2020 yearend       Foreigners visiting Turkey in 2020 falls by 71.7% to 12.7 million       Turkey’s private sector foreign debt is USD 173.9 billion as of 2020 yearend       Turkey’s economy grew by 1.8% in 2020       Foreign Direct Investment inflow to Turkey was USD 7.7 billion in 2020