TR EN AR FA
 

Memorandum on the Communiqué Numbered 2025/25 Amending the Communiqué No:2013/15 on Required Reserves

In accordance with the recent communiqué of the Central Bank Of Turkey, Communiqué Numbered 2025/25 Amending the Communiqué No:2013/15 on Required Reserves (“Communiqué”) published on the Official Gazette dated August 31, 2022, the Communiqué on Required Reserves No:2013/15 have been amended. The amendments (“Amendments”) made in the scope of the Communiqué will be in effect as of September 2, 2022.

In summary, with the Amendments to Communiqué No:2013/15 on Required Reserves, the Central Bank of Turkey imposed additional obligations on banks and companies. The obligation of reserve requirement applied to banks for conversion of foreign currency to Turkish lira for natural persons shall be applied for legal entities as well.

Within the scope of the Amendments, the phrase “natural person” in the first paragraph of Article 10/B of the Communiqué No:2013/15 on Required Reserves has been amended as “natural persons and legal entities”, and the second paragraph of the article as below and the phrase “ratio” in the third paragraph as “ratios”.

“(2) Starting from the first maintenance period following the maintenance calculation period, banks with conversion rates that fall under 10 percent for natural and legal persons individually, maintain by 5 additional points, and banks with conversion rates between 10 percent and 20 percent maintain by 3 additional points. For the banks whose conversion rates are not possible to determine, procedures and principles set by the Central Bank (MB) shall be followed. “

Obligations Anticipated in Regard to Recent Amendments

According to the Amendments within the scope of the Communiqué, the obligation estimated for the participation banks and banks of deposit regarding the conversion rate of the foreign currency deposit/participation funds to Turkish lira deposit/participation accounts held by natural persons under their management that is stipulated under the Article 10/B of the Communiqué No. 2013/15 has been extended as the minimum conversion rate of the foreign currency deposit/funds held by natural persons and legal entities to Turkish lira deposit/participation accounts must be met due to the recent Communiqué No. 2022/25. In this regard, the obligation of conversion of the foreign currency funds held by natural persons to Turkish lira deposit/participation accounts has ceased as the banks are obliged to meet the minimum conversion rate for accounts held by natural persons and legal entities as of the effective date September 2, 2022, in accordance with the Communiqué. In the case of accomplishment of the targeted conversion rate solely for accounts held by natural persons or accounts held by legal entities, the targeted conversion rate will be considered unsatisfied and as a result, additional points of the required reserve ratio stipulated in the scope of the Amendments shall arise and be added to the required reserve ratio to be maintained of the banks who fail to meet the conversion rate. Within the scope of the Communiqué, banks will commence maintaining the required reserves as of September 16, 2022.

Required Reserve Ratios to be Maintained by Banks and Sanctions Subject to Banks within the Scope of Communiqué No. 2013/15

With the publication of the Communiqué, the targeted conversion rate of the foreign currency deposit/participation funds to Turkish lira deposit/participation accounts held by natural persons under the banks’ management is stipulated for the accounts held by legal entities under the management of the banks as well. In the event of failure of the banks’ to meet the conversion rates for both the accounts held by natural persons and the accounts held by legal entities, an increase in the required reserves ratio to be maintained by the banks shall occur by Article 6 of the Communiqué No. 2013/15. The required reserve ratios estimated to be satisfied within the scope of Article 6 are as follows:

Deposit/participation fund (excluding foreign banks of deposit/participation fund and precious metal deposit accounts)

a) On demand, call deposit, deferred up to 1 month, up to 3 months, up to 6 months and up to 1 year

%25

b) deferred for 1 year and longer than 1 year

%19

Precious metal deposit accounts

a) On demand, call deposit, deferred up to 1 month, up to 3 months, up to 6 months and up to 1 year

%26

b) deferred for 1 year and longer than 1 year

%22

Borrower funds

%25

Other obligations (including foreign banks of deposit/participation funds)

a) deferred up to 1 year (including 1 year)

%21

b) deferred up to 2 years (including 2 years)

%16

c) deferred up to 3 years (including 3 years)

%11

ç) deferred up to 5 years (including 5 years)

%7

d) deferred for longer than 5 years

%5


















The required reserve ratios shown in the above table are anticipated for foreign currency liabilities and within the scope of the subject change; starting from the first maintenance period following the maintenance calculation period, in addition to the rates on the table, banks with conversion rates that fall under 10 percent for natural and legal persons individually, maintains by 5 additional points, banks with conversion rates between 10 percent and 20 percent maintain by 3 additional points. For the banks whose conversion rates are not possible to determine, procedures and principles set by the Central Bank (MB) shall be followed.

In cases where the banks and financing companies can not maintain required reserves on time, in full, or after adequate investigation, it is determined that it was miscalculated; deposits in Turkish lira are twice the amount of the deficit if it was in Turkish lira and deposits in US dollars third times the amount of deficit if it was in foreign currency, shall be withheld under blocked accounts within Central Bank, for a time period according to the timeframe of deficient maintenance; without any interest payments.

Conclusion

As per the Communiqué and amended Communiqué on Required Reserves, the conversion ratio of foreign currency to Turkish lira accounts held by natural persons is estimated for the accounts held by legal entities as well. Hence, under this regulation which estimates an additional obligation for the banks, an increase in the required reserves ratio to be maintained by the banks shall occur if the banks fail to meet the targeted conversion rate.

Best regards,

Yüksel / Yerkel & Partners

Yol Tarifi