Press Release on Securities Maintenance (2022-41)

No: 2022-41

18 October 2022

Press Release on Securities Maintenance

The Central Bank started to promote the conversion from foreign currency deposits to Turkish lira deposits in the scope of the “liraization strategy” in December 2021 and thus, took an important step towards reinforcing the preference for Turkish lira deposits. As a result of this practice, the share of Turkish lira in the balance sheets of banks has increased while their funding maturities have extended. Accordingly, the practice has strengthened banks’ balance sheets, thereby supporting financial stability. 

In the meantime, banks have realized their conversion targets set by the Central Bank at the end of 2021, and complied with the Turkish Lira-Denominated Securities Maintenance practice initiated as part of the “liraization strategy”. 

With the amendment made in the Securities Maintenance practice, the securities maintenance ratio is revised as 5%. By the beginning of 2023 securities will be maintained based on the targets of the Turkish lira deposits share, instead of the conversion rate. 

Further steps as part of the “liraization strategy” will be taken in the rest of the year and in 2023.

Contact

For further information, please send an e-mail to basin@tcmb.gov.tr.