IslamicFinance.de

Turkey is likely to loosen some regulations on domestic banks to spur lending, Huseyin Aydin, the head of the national banking association said, as the government looks to ease the impact of a widely expected central bank rate increase. The government is determined to pursue growth-oriented economic policies. It is expected that easing in macro-prudential measures will be carried out. Five years ago regulators introduced tighter rules designed to cool lending and close a yawning current account deficit. Those included higher reserve requirements, forcing banks to hold more capital.
Aydin said he expects changes to regulations on reserve requirements and risk weighting of assets, which should help to offset the impact of tighter monetary policy on bank costs.