CBRT raises credit growth limits

Under the new regulation, the eight-week growth limit for consumer and vehicle loans was increased from 3% to 3.5%. The limit for Turkish lira-denominated loans extended to small and medium-sized enterprises (SMEs) was raised from 5% to 5.5%, while the limit for Turkish lira loans extended to non-SME businesses increased from 2% to 2.5%. As a result, credit growth limits were raised by 0.5 percentage points across all four loan categories.

In addition to adjusting credit growth limits, the CBRT introduced changes to reserve requirement regulations. Under the new framework, interest or compensation payments in Turkish lira will be made on required reserves maintained against banks' and financing companies' non-deposit liabilities denominated in Turkish lira and foreign currencies with maturities exceeding one year. The regulation aims to provide banks with greater flexibility for credit expansion while supporting long-term funding conditions.