The reserve requirements are among important monetary policy instruments for the CBRT. In line with the new strategy that took effect in the last quarter of 2010, the CBRT developed a new policy framework towards reducing macro financial risks within the limits of favorable inflation outlook. Accordingly, in addition to the traditional policy instrument of the one-week repo auctions rate, reserve requirements were introduced as an active tool.
The liabilities subject to reserve requirements are calculated on Friday every two weeks and comprised of the following balance sheet items by taking into account the accounting standards and records of banks including the liabilities of foreign branches and excluding obligations to Central Bank, the Treasury, domestic banks and headquarters and branches of banks established in Türkiye by international agreements.
a) Deposits / participation funds (except those received from official institutions under the Communique on the Maturity and Types of Deposits and Participation Funds (Number:2007/1) published in the Official Gazette dated 3/2/2007 and numbered 26423 and official institutions under Regulation on Public Treasurership entered into force with the Decree No.810 dated 7/3/2019 and amount of Turkish lira deposits/participation funds converted from FX and gold deposits/participation funds as per the principles determined by the CBRT).
b) Funds from repo transactions (except those received from Borsa İstanbul markets).
c) Loans obtained (except the loans guaranteed by the Treasury).
d) Securities issued (net).
e) Subordinated debt that are not taken into account in the calculation of own funds.
f) Liabilities to the head office abroad (net).
g) Debt to contracted merchants due to credit card transactions.
h) Borrower funds of investment banks.
Banks having the leverage ratios below the ratios specified in the Communiqué on the Required Reserves are subject to additional reserve requirement ratios as stated in the Communiqué.
The maintenance of required reserves begins on the next Friday after two weeks following the date of the liability calculation and lasts for 14 days. Basically, required reserves are maintained in terms of Turkish lira for Turkish lira liabilities, while they are needed to be hold in US dollar for the foreign currency liabilities denominated in US dollar, and in US dollar or euro for the remaining foreign currency liabilities. Additionally, up to the full amount of required reserves hold against precious metal accounts can be hold in the form of standard gold in blocked accounts.
Remuneration rate applied to Turkish lira-denominated required reserves is 0%.