Page 23 - TURKRptOct22

2.6 More non-capital controls
Turkey's central bank raised the reserve requirement ratios for banks that fall short of targets in pushing customers to convert FX deposits into FX-protected deposits (under the KKM scheme).
The regulator now included corporate accounts in the conversion requirement.
With the latest amendment, if a bank can not convert 10% of FX deposits, it will keep an additional 5% in required reserves. If the conversion rate stands at between 10% and 20%, the bank will keep an additional 3% at the central bank.
Previously, local banks, which could not achieve conversions of 5% or 10% of real persons’ FX deposits, were required to keep additional reserves at the central bank.
On September 2, business daily Dunya reported that the government’s lira-ization strategy was again weighing on the banking industry. Almost every day, with regulatory amendment after amendment, the banks are inculcated with the need to reduce their FX deposits.
Turkish banks are currently obliged to pay a 3% annual commission on their required reserves held at the central bank if the share of their lira deposits stands at below 50% of total deposits.
Some more measures are also released every day.
23 TURKEY Country Report October 2022 www.intellinews.com