The Central Bank of the Republic of Turkey (CBRT) announced that it was decided to reduce the securities facility rate from 10% to 5% as a first step within the scope of simplification policy.
The CBRT's Communiqué on the amendment to the Communiqué on Securities Registration was published in the Official Gazette.
Accordingly, as a first step within the scope of the simplification policy, it was decided to reduce the securities facility rate from 10 percent to 5 percent.
Within the scope of the Communiqué, the securities facility ratio will be increased by 7 points for banks whose lower of the shares calculated for real and legal persons is below 57 percent, and reduced by 2 points for banks with 70 percent and above.
Within the scope of the "Temporary application regarding the securities registration of banks according to the conversion rate" added to the Communiqué, the following was noted
"To be applied until the calculation date of 29 September 2023 (inclusive), in the event of conversion below 10% according to the conversion rate from foreign currency deposits/participation funds to Turkish lira deposits/participation accounts, which will be calculated by banks according to the procedures and principles determined by the Central Bank based on the accounting standards and recording system to which deposit and participation banks are subject, securities in the amount of twice the amount of the missing part will be blocked. The facility period starts on the last Friday of the month following the calculation date and ends on the day before the last Friday of the sixth month following the start of the facility. The provisions of this article shall not apply to banks whose foreign currency deposit/participation fund size is below the amount to be determined by the Central Bank."
Simplification will continue gradually
In the statement on the CBRT's website, it was stated that "In the decision of the Monetary Policy Committee dated 22 June 2023, it was stated that the current micro and macroprudential framework will be simplified based on impact analyses and with a gradual approach."
In this context, as a first step, it was stated in the statement that the securities facility application was simplified and published in the Official Gazette in a manner that will increase the functionality of market mechanisms and strengthen macro financial stability, and that the simplification process will continue gradually in line with the principles announced by the Monetary Policy Committee.