"It is a comforting and positive development for the sector." "Ratios were slowly lowered, allowing banks to adjust their positions slowly and not triggering a rapid rise in interest rates, a slight relaxation of the rules would give banks room and time to manoeuvre about their bond portfolios," said Enver Erkan, Chief economist at Dinamik Yatirim. The new regulation said banks whose lira deposits are less than 57% of total deposits will have to hold an additional seven percentage points of securities, compared to the previous seven additional points applied to banks that held less than 60% lira deposits. Securities that banks must maintain ranged between 3% and 12% of their lira deposits, under the new standard, compared to between 3% and 17% previously. Under new central bank steps announced at the weekend, the securities maintenance ratio that banks are required to allocate to their foreign currency deposit was reduced to 5% from 10%. ![]() ![]() "It seems the CBRT (Turkish central bank) seems to have completely abandoned the use of reserves in the forex market," said a senior banker, adding that its foreign exchange position showed increases of $1-2 billion a day.
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