The Central Bank shared the implementation instruction of the new regulation, which aims to increase the TL ratio in the balance sheets of banks, with the banks.
The formula to be used in the application, which gives new purposes to banks for their obligation to hold securities and rewards banks that achieve their TL target in the middle of 60-70%, is also included in the instruction.
The total deposit amount of the Turkish lira deposit/participation fund to be calculated for real and legal persons with the amendment made in the statement made by the CBRT on 31 December 2022 regarding the scope of liabilities subject to securities establishment and with the amendment made in the Communiqué on Securities Establishment published on 7 January 2023. The details of the calculation system regarding the decision to establish an additional or discounted security relative to its share in the participation fund are given.
The Bank had decided to expand it to cover the processes carried out with the aim of removing the foreign currency liabilities subject to security establishment from the balance sheet by making financial derivative processes with the funds obtained from foreign currency repo transactions with real individuals and real sector and customers providing foreign currency funds.
In the last statement made by the CBRT, it was announced that the changes in the bet regarding the scope of the liabilities subject to the securities establishment were also decided to be reflected in the calculation of the share of the Turkish lira deposit/participation fund in the total deposit/participation fund.
According to this;
Natural person Turkish lira share = (M1-T1+R1) / (M1+M2+R1+R2) * 100
M1 = Turkish lira deposit/participation fund for real individuals
M2 = Foreign currency deposit/participation fund for real persons resident in Turkey
T1 = Financial derivative transactions with domestic resident real person customers providing foreign currency funds
Processes that will result in the removal of foreign currency liabilities subject to security establishment from the balance sheet (customer in the direction of purchasing foreign currency at maturity)
R1 = Procured from Turkish lira repo transactions with real resident individuals
funds
R2 = Obtained from foreign currency repo transactions with real individuals residing in Turkey
funds
Legal entity Turkish lira share = (M3-T3+R3) / (M3+M4+R3+R4) * 100
M3 = Turkish lira deposit/participation fund for legal persons
M4 = Foreign currency deposit/participation fund for legal individuals residing in the country
T3 = Financial derivative transactions with domestic legal person customers providing foreign currency funds
Processes that will result in the removal of foreign currency liabilities subject to security establishment from the balance sheet (customer in the direction of foreign currency purchase at maturity)
R3 = Funds obtained from Turkish lira repo transactions with legal persons residing in the country
R4 = Obtained from foreign currency repo transactions with domestic legal persons
funds
was determined as.
In the announcement made by the CBRT, the items listed in the first paragraph of the 4th item of the Notice from the legal person deposit/participation fund and explained in the “2.A. Scope of liabilities subject to securities establishment” section of the Implementation Instruction will be excluded, and that the repo transactions with the Central Bank, other banks and financial institutions and He noted that derivative processes will not be taken into account in the calculations.
The changes made in the calculation of real and legal person Turkish lira shares will be effective from the calculation date of 27/1/2023 in the security establishment application and from the calculation date of 20/1/2023 in the application of the board of foreign currency mandatory reserves. On the other hand, changes in bet will be taken into account in Turkish lira deposit/participation fund share notifications as of 13/1/2023.
