The first step in the process of simplifying the Central Bank

The Central Bank of the Republic of Turkey (CBRT) announced that, as a first step within the scope of its simplification policy, it has decided to reduce the security establishment fee from 10 percent to 5 percent.

The CBRT statement on the modification of the Statement on the Establishment of Securities was published in the Official Gazette.

In this sense, as a first step within the scope of the simplification policy, it was decided to reduce the security establishment rate from 10 percent to 5 percent.

Within the scope of the Communiqué, for banks whose rate of constitution of securities is less than 57 percent, which is the lowest of the quotas calculated for individuals and legal entities, it will increase by 7 points, and for banks with 70 percent and more, it will be reduced by 2 points.

Within the scope of the “Transitional practice in matters of constitution of securities according to the conversion rate of banks” added to the Communiqué, the following was indicated:

“According to the conversion rate of deposit/participation fund in foreign currency to deposit/participation account in Turkish lira, which will be calculated by the banks according to the procedures and principles determined by the Central Bank, based on the accounting standards and the registration system in which they are deposited and Participation banks are subject, to be applied until the calculation date of September 29, 2023 (inclusive). In case of conversion of less than 10 percent, it is established as blocked an amount equal to twice the amount of the missing part.

The facility period begins on the last Friday of the month following the calculation date and ends on the day before the last Friday of the sixth month following the start of the facility. The provisions of this article do not apply to banks whose amount of deposit/participation fund in foreign currency is less than the amount determined by the Central Bank.

‘SIMPLICATION WILL CONTINUE GRADUALLY’

In the statement on the CBRT website, “It was indicated in the decision of the Monetary Policy Committee of June 22, 2023 that the existing micro and macroprudential framework will be simplified with a gradual approach based on impact analysis.” Was informed.

In this context, as a first step, the implementation of value setting has been simplified so as to increase the functionality of market mechanisms and strengthen macro-financial stability, and the simplification process will continue gradually in line with the principles announced by the Monetary Policy Committee. (AA)