Central Bank increases reserve requirement ratios

The Central Bank of the Republic of Turkey (CBRT) has increased the reserve requirement ratios for Turkish lira transactions originating from abroad. With the regulation, the rates applied to short-term borrowings have been gradually raised.

MACROPRUDENTIAL FRAMEWORK ANNOUNCEMENT PUBLISHED

The CBRT shared its Press Release on the Macroprudential Framework with the public. The statement indicated that changes were made to the reserve requirement ratios for Turkish lira liabilities with a maturity of up to 1 year obtained from abroad, in order to strengthen macro-financial stability and the monetary transmission mechanism.

In this context, the rates for funds obtained through Turkish lira-denominated repo transactions abroad and loans used from abroad were increased by 2 percentage points. According to the new regulation, a rate of 20 percent will be applied for maturities up to one month, 16 percent for up to three months, and 14 percent for up to one year.

FOREIGN DEPOSITS AND LIABILITIES

The CBRT also announced that the reserve requirement ratio for foreign bank deposits/participation funds with a maturity of up to one year and liabilities to foreign headquarters has been set at 14 percent.

"COMMUNIQUÉ ON RESERVE REQUIREMENTS" ENTERED INTO FORCE

The "Communiqué Amending the Communiqué on Reserve Requirements (No: 2013/15)" prepared by the Central Bank was published in the Official Gazette dated January 24, 2026, and entered into force.

According to the communiqué, the reserve requirement ratio for exchange rate/price protection-supported accounts with a maturity of up to six months was increased to 40 percent. The rate was set at 22 percent for exchange rate/price protection-supported accounts with a maturity of up to one year and one year or more.

The reserve requirement ratio for accounts with variable interest rates linked to the CPI, PPI, and the Turkish Lira Overnight Reference Interest Rate (TLREF) was announced as 10 percent.

NEW RATES FOR OTHER LIABILITIES

The rates regarding other liabilities of banks were also rearranged in the communiqué. Accordingly, the rate for other liabilities with a maturity of up to one year, including foreign bank deposits/participation funds, became 8 percent.

A rate of 5.5 percent will be applied to liabilities with a maturity of up to three years, and 3 percent for liabilities with a maturity of longer than three years. The reserve requirement ratio for securities issued by development and investment banks with a maturity of longer than one year was set at 0 percent.

Within the scope of the regulation, the reserve requirement ratio for funds obtained by banks from repo transactions abroad and loans obtained from abroad was recorded as 20 percent for maturities up to one month and 14 percent for maturities up to three months.

For demand foreign bank deposits/participation funds belonging to the main partnership, the reserve requirement ratio was announced as 0 percent.

It was reported that the communiqué would enter into force as of the date of its publication and that its provisions would be executed by the Governor of the CBRT.