Related part in the Central Bank's Reserve Requirement release:
“To provide banks with flexibility in meeting the loan demand specific to this period, the CBRT has decided to temporarily (until the year end) suspend the enforcement of the rule of having adjusted real loan growth rate below 15% for the banks with a real annual loan growth rate above 15% in order to be able to benefit from reserve requirement incentives.”
As it will be remembered, along with the required reserve criteria introduced in 2019, banks have been obliged to provide credit growth conditions for accrual. Recently, real loan growth was controlled within a certain band. Banks that could not meet the minimum credit growth requirement could not benefit from the RRR incentive. The Asset Ratio criterion was another tool that directed banks to lend. Loan growth started to increase with low interest rates and regulations. The revision of 15% ceiling criterion will mean that banks will be more comfortable in loan distribution.
Source: Tera Menkul
Hibya News Agency