The Central Bank of the Republic of Turkey (CBRT) has made changes to credit growth limits in order to support macro-financial stability and the monetary transmission mechanism.
Within the scope of the regulation, the eight-week growth limits applied to personal, auto, and Turkish Lira-denominated commercial loans have been increased.
According to the new decision, the growth limit applied to personal and auto loans, which was 3 percent, has been raised to 3.5 percent.
For Turkish Lira loans extended to small and medium-sized enterprises (SMEs), the limit has been raised from 5 percent to 5.5 percent.
For Turkish Lira loans extended to enterprises other than SMEs, the eight-week growth limit has been raised from 2 percent to 2.5 percent.
Thus, the limits in individual and commercial credit channels have been updated upwards to a limited extent.
In addition to credit growth limits, the CBRT also made changes to the required reserve practice.
Accordingly, interest and compensation payments in Turkish Lira will be made on required reserves established for non-deposit liabilities of banks and finance companies in Turkish Lira and foreign currency with maturities longer than one year.
News Source: 12punto
