Türkiye's central bank activates macroprudential measures to support financial stability
The Central Bank of the Republic of Türkiye announced a new package of macroprudential measures covering credit-growth caps, lira deposit incentives and FX-position oversight. The regulation imposes a weekly credit-growth ceiling on commercial banks and includes steps to accelerate exit from FX-linked deposits.
According to Anadolu Ajansı Ekonomi, the Central Bank of the Republic of Türkiye published a circular on Friday evening activating a six-pronged macroprudential package. Commercial banks' weekly TL commercial-loan growth has been capped at 1.2% and personal loan growth at 0.9%; banks breaching the caps face a 2.5-percentage-point additional reserve-requirement coefficient. The regulation takes effect at the start of business on Monday, 26 May.
The circular offers seven incentive channels for banks to accelerate the transition from FX-protected deposits (KKM) to standard lira deposits, with a target of reducing the KKM balance below 600 billion lira by end-June. Finance Minister Mehmet Şimşek posted that 'fighting inflation and securing financial stability are two main pillars that support each other'; the Treasury and Finance Ministry has also calendared an end-June review on budget discipline.
International analyst reactions were broadly constructive. Goldman Sachs's Türkiye chief economist Clemens Grafe said the package 'fits the gradual-tightening narrative the market expected'; Capital Economics's Liam Peach said it 'supports a reduction in lira volatility into the June inflation print'. The Borsa Istanbul banking index closed the week up 1.8%; two-year government-bond yields fell 18 basis points.
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