Page 43 - TURKRptJun20
P. 43
“The capital increase will be around the five billion to 7.5 billion lira level for each state bank, totalling about 20 billion lira.”
The BDDK banking watchdog announced exceptions to its asset ratio parameters for banks brought in in late April.
8.1.2 Deposits
The collapse in lira returns remains a solid backdrop behind the appetite for depreciation in the local currency. Lira deposit rates at local lenders have fallen to as low as 6% due to the deposit compression strategies pursued by some banks to comply with the lately imposed active lending ratio, BloombergHT reported.
8.2 Central Bank policy rate
The central bank has lowered its forecast for official inflation at end-2020 to 7.4% from 8.2%.
The move paves the way for Turkey to extend its ultra-aggressive easing cycle. It began in July last year, when the policy rate stood at 24%. Since then the central bank has cut rates nine times in a row, taking the benchmark to 8.25%.
43 TURKEY Country Report June 2020 www.intellinews.com
