The net stable funding rate of banks will be calculated

To prevent banks’ funding risk from causing a deterioration in their liquidity levels, the principles have been determined to ensure stable funding.

In accordance with the regulation of the Banking Regulation and Supervision Agency (BDDK) on the calculation of the net stable funding rate of banks published in the Official Gazette today, the net stable funding rate will be calculated on a consolidated basis and unvested by dividing the current stable fund amount by the required stable fund amount.

Pursuant to the standard, the 3-month simple arithmetic average of the consolidated and unconsolidated stable net funding rate, which is calculated monthly from the equity calculation periods, as of January 1, 2024, may not be less than 100 percent as of March 2020. June, September, and December.

The BRSA will be empowered to establish a minimum rate for the net stable funding rate and to determine the principles for calculating and maintaining this rate.

WIDE AUTHORITIES TO BRSA

The BRSA, with the approval of the Central Bank (CBRT), may determine more prudent principles by bank or group of banks, taking into account funding risk levels.

Development and investment banks were exempt from meeting these minimum rates until otherwise determined by the BRSA. The regulation also includes details on the calculation of the current and required stable fund and derivative assets.

As a result of the evaluation with the CBRT, it is decided to determine a consideration rate lower than that specified in the regulation for the assets given as collateral to the CBRT in order to obtain liquidity from the CBRT in the field of exceptional and temporary extraordinary liquidity transactions. by the CBRT in the face of stress experienced in financial markets in general or macroeconomic developments, BRSA was authorized.

6 MONTHS AND LONG TERM

In addition, the BRSA will be authorized to determine a consideration rate of not less than 5 percent for accounts receivable from the CBRT with a maturity of 6 months or more as a result of the withdrawal of excess liquidity from the market by the CBRT within the scope of these extraordinary liquidity measures. transactions, as a result of the evaluation with the CBRT.

Consequently, effective as of January 1, 2024, if any of the consolidated and unconsolidated net stable funding rates falls below the minimum rate, the corresponding default will be resolved until the following calculation period, and it cannot be indicated more than one breach. performed for each of the 2 rates in a calendar year. (Reuters)