Simplification step from the CBRT

The Central Bank of the Republic of Türkiye (CBRT) has published a Communiqué on Reserve Requirements in the Official Gazette. In the communiqué issued by the CBRT, it was announced that the zero percent reserve requirement application, which is applied until the end of the year to the increase in foreign currency liabilities with a maturity of more than 1 year obtained by banks and finance companies from abroad, has been extendedfor the amount of the increasezero percentreserve requirement applicationperiod has been extendedit was reported that it would not be applied.

Foreign currency reserve requirement ratios were readjusted. For foreign currency deposits and participation funds, the ratio for demand and up to 1-month maturity accounts wasreduced from 32 percent to 30 percent,andin addition to this,the ratio for longer-term accounts waschanged to 26 percent.The reserve requirement ratio for demand and up to 1-month maturity precious metal deposit accounts was

increased from 28 percent to 30 percent, while the rate for longer-term accounts was set at 26 percent. Forother foreign currencyliabilities,the rate of 21 percent for accounts with maturities up to 1 yearwas maintained. For longer maturities, a significantreduction was implemented.Adjustmentsweremade.

According to thecommunique, the rate forliabilities with maturities up to 2 yearswas reduced from 16 percent to 10 percent, and for those with maturities up to 3 yearsthe rate for liabilitiesthe rate for liabilities was reduced from 11 percent to 8 percent, and for liabilities with a maturity of up to 5 yearsthe rate for liabilities with a maturity of up to 5 yearsthe rate for liabilities was reduced from 7 percent to 3 percent. For liabilities with a maturity of longer than 5 yearsfor liabilities with a maturity of longer than 5 yearsthe reserve requirement ratiothe reserve requirement ratiowas set at 0 percent.

The maintenance of liabilities based on the new ratesIt was announced that it would begin on January 16, 2026.