KKM accounts decreased by 39.3 billion TL last week
The Banking Regulation and Supervision Agency (BDDK) announced its weekly data on the banking sector. In the week ending August 25, it was seen that there was an outflow from Currency Protected Deposit (KKM) accounts.
The Central Bank KKM (CBRT) regulations were effective at the start. Thus, for the first time since the beginning of the year, there was a weekly drop in KKM accounts. Finally, the total money in KKM accounts decreased in the week ending January 6.
DECREASE OF 39.3 BILLION TL
According to BRSA data, total deposits in the banking sector (including interbank) decreased by TL 95.161 billion last week. The total deposits of the banking sector, which decreased by 0.7 percent in the week in question, amounted to 12 trillion 892 billion TL 93 million.
Total currency protected deposits decreased by TL 39 billion 29 million last week. The total size in KKM accounts was 3 trillion 36 billion TL.
BLOOMBERG: WITHDRAWAL OF $5 BILLION
The American financial agency Bloomberg announced that Turkish depositors began to exit these accounts with the KKM regulations of the CBRT.
It was reported in the news that last week depositors withdrew approximately $5 billion from their KKM accounts. According to the news, most of the withdrawals were made to KKM foreign currency conversion accounts and depositors transferred their money to their foreign currency accounts.
WHAT HAPPENED?
The August 20 CBRT decision, which changed banks’ value-setting practice, set the goal of converting overdue currency protected deposit accounts into standard TL deposits.
It was announced that banks that could not meet the criteria in this regard would be required to post additional collateral.
The CBRT announced the target of transition to time deposits in TL of at least 10 percent for foreign currency conversion accounts of real persons with maturity, at least 50 percent for deposits with TL currency protection and a minimum maturity of 32 days for deposits in TL, with the application instruction sent to the banks the day before.