The bank said in a statement Sunday that the new reserve requirement
would take effect Monday.
Turkey's central bank has announced that it has increased its foreign exchange reserve requirement
With a view to supporting financial stability and by taking into account the latest developments in global markets, the reserve requirement
ratios of foreign exchange-denominated liabilities of banks and financing companies are revised in order to encourage the extension of maturities of non-core liabilities," the central bank said in a statement.
5 percent / year and lower the minimum reserve requirement
ratio on forex-denominated liabilities of credit institutions to 16 percent down from 18 percent to apply over July 24 Aug.
The central bank had raised the lira reserve requirement
half a percent in September and said last month it may raise it to 6% by year-end.
The lowering of the reserve requirement
will also allow banks to get a return on the funds that have been released.
It also raised for the first time in years the reserve requirements
banks have to make for time and savings deposits to 4pc from 2pc, according to the memo.
The annual indexing of the low reserve tranche and the reserve requirement
exemption amount is based on growth in net transaction accounts and total reservable liabilities, respectively, at all depository institutions between June 30, 2004, and June 30, 2005.
Instead of interest rate hikes, the central bank of China will rely more heavily on administrative measures, such as window guidance over bank lending, higher reserve requirements
, and moral suasion over local government infrastructure spending.
First, it challenges the notion that reserve requirement
ratio changes are simply one of three tools, along with the discount rate and open market operations, at the disposal of the Federal Reserve System for implementing monetary policy.
reductions and deposit sweeping have allowed banks to lower such incremental costs.
Commercial banks here have welcomed a move by the Central Bank to reduce the reserve requirement
resulting in the lowering of interest<BR> rates on loans, reports CANA (May 16, 2001).