Turkish Central Bank Changes Regulation on Securities Establishment

The Turkish Central Bank (TCMB) has recently announced a new regulation on securities establishment. The new regulation removes the requirement for banks to establish securities against foreign currency liabilities and expands the definition of assets that are subject to securities establishment. The securities establishment ratio for assets subject to securities establishment has also been increased.

The new regulation on securities establishment is set to enter into force on a future date. Banks will need to comply with the new regulation by this date.

The new regulation on securities establishment is likely to have a significant impact on Turkish banks. The removal of the requirement to establish securities against foreign currency liabilities will free up banks to use their foreign currency reserves for other purposes, such as lending or investing. This could lead to an increase in lending and investment activity in the Turkish economy.

The expansion of the definition of assets that are subject to securities establishment will also have an impact on Turkish banks. Banks will now need to establish securities for a wider range of assets, which could increase their costs. However, the increase in the securities establishment ratio will offset some of these costs.

Overall, the new regulation on securities establishment is likely to have a mixed impact on Turkish banks. Some banks may benefit from the changes, while others may be adversely affected. The full impact of the new regulation will not be known until it has been in place for some time.

In addition to the changes mentioned above, the new regulation also makes a number of other changes, such as:

The establishment period for securities has been extended.
The provisions of the regulation now apply to all banks.
The Central Bank has been given the authority to make further changes to the regulation as needed.
The new regulation on securities establishment is a significant change to the Turkish banking system. It will be interesting to see how the changes impact the Turkish economy in the coming months and years.