The Central Bank of the Republic of Turkey (CBRT) has expanded its securities facility liabilities by including derivatives and repos in the formula that will be used in the calculation of TL’s share of deposits for banks.

In the implementation instruction sent by the CBRT to the banks, seen by Reuters, formulas relating to natural and legal persons were included in the calculation of the share of deposit funds/participation of TL in the total deposit funds/participation .

Banks are required to maintain 10 percent bond liabilities according to the share of TL deposits in all deposits. Included in the formulas were “Transactions that will result in the elimination of foreign currency liabilities subject to the constitution of balance sheet values ​​through financial derivative transactions.”

NOTIFICATIONS WILL BEGIN ON JANUARY 13

The formula that will be used to calculate TL’s share of all deposits; TL repo transactions are added to the numerator and denominator as plus, derivative transactions are added to the denominator as negative, and foreign currency repo transactions are added to the denominator as plus.

Among the changes to the CBRT, those related to the constitution of securities will be effective as of January 27, and foreign exchange commissions will be effective as of January 20. Notifications will begin on January 13.

DISCOUNT FOR THOSE WITH HIGH TL DEPOSIT

The value establishment rate is at the level of 10 percent for relevant deposits, but for banks with a high share of TL at this rate, an increase is made for banks with a low discount.

In current practice, which will take effect from the end of February, banks with a TL deposit share of less than 50 percent will be charged an additional 7 points, and for banks with a 50 to 60 percent share percent, an additional 2 percentage points will be applied. be applied. For banks with a participation between 60 percent and 70 percent, a discount of 5 points will be applied and a discount of 7 points will be applied to banks with a participation of 70 percent or more.

The CBRT also announced that starting this year it will not pay exchange differences related to currency protected deposits subject to options, swaps or derivative products. Related options were used as an alternative to the low returns on foreign currency deposits in the market. (Reuters)