Warning letter from the Central Financial institution to the banks

The Central Financial institution of the Republic of Turkey (CBRT) warned banks about some practices.

In accordance with Bloomberg’s report, within the doc despatched from the CBRT to the Banks Affiliation of Turkey, warnings have been made on some points, together with the deposit requirement for credit score utilization.

Within the letter despatched from the CBRT, it was acknowledged that the sector’s implementation of the macroprudential measures was adopted carefully by the CBRT inspectors, and it was useful to remind the banks of the effectiveness of present insurance policies and the significance of the well being functioning of the monetary system.

Within the article; In an effort to keep away from TL deposit-based liabilities within the securities facility laws, prospects who’re supplied with loans are allowed to make use of the funds they acquire in foreign money protected deposits, prospects who’re supplied with loans are obliged to make use of some or the entire loaned funds as demand deposits for a time period. It was acknowledged that it was decided that TL deposits have been collected at excessive charges, and that international change transactions with international banks continued at excessive quantities throughout off hours.

The CBRT acknowledged that these practices don’t adjust to the spirit of the financial institution’s rules and that most consideration needs to be paid to complying with the financial institution’s regulatory directions.

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