The CBRT may, within the scope of the principles to be determined by itself, accept commercial bills and documents to be presented by banks for rediscount, provided that they bear at least three signatures of solvent persons. The types of commercial bills to be accepted for rediscount credits, other conditions and the maximum limit of credits are determined by the CBRT within the context of the principles of the monetary policy. The CBRT may grant advances against the bills that it may accept for rediscount.
General framework of advances and rediscount credits are governed by Articles 45 and 56 of the CBRT Law.
Turkish lira rediscount credits, which have lost their importance as an active monetary policy instrument, have not been used for a long time.
The CBRT shall not extend credits and grant advances except for the operations authorized by its Law, and the credit to be extended and the advance to be granted shall not be unsecured or without collateral, and in any manner whatsoever the Bank shall not, be a guarantor or provide security other than its own direct transactions.
The CBRT shall not, grant advances or extend credits to the Treasury and to public establishments and institutions, and shall not purchase debt instruments issued by the Treasury and public establishments and institutions in the primary market.