BRSA) announced a change in the calculation of the asset ratio (AR). With the new formula, banks are aimed to support SMEs, exporters and investment projects.
In the statement made on the website of the Banking Regulation and Supervision Agency (BBDK), it was decided that the monthly average of that month should not fall below 100 percent for deposit banks and 80 percent for participation banks as of the end of each month. It has been reported that there has been a change in the calculation of the given AR.
Accordingly, it was noted that banks, whose total Turkish Lira (TL) deposits and foreign currency (FX) deposits, excluding deposits, remained below TL 25 billion as of March 31, were given a deadline until December 31.
In the statement, it was stated that with the new regulation, it was decided that SME loans, project finance loans and export loans in the “Loans” item in the share section of AR should be weighted with a coefficient of 1.1, and loans with a term of less than 3 months are not included in the “Loans” item in the calculation. .
In the statement that banks (except for transactions made among themselves) will be evaluated under the item “TL Deposit” in the denominator part of AR in calculating the TL-denominated repo with their customers and their TL financing bills with a maturity of less than 6 months, banks (excluding transactions between themselves) It has been reported that FX-denominated repo with customers will be taken into account under the item “FX Deposit” in the denominator section of AR in the calculation.
In the statement, in the calculation of the denominator part of AR, a coefficient of 1 was applied to the part of the “FX Deposit” item up to FX loans and 1.75 to the part exceeding FX loans, and the AR formula was revised.
Analysts noted that during the Kovid-19 outbreak, the AR application started in May in order to ensure that the banking sector effectively fulfills its lending activities in the real economy, and that banks successfully complied with the regulation made in the first month of the application, with a few exceptions.
The analysts stated that the aforementioned regulation was put into practice in order to take the necessary measures for arbitrage activities, thus, in the normalization process, banks were encouraged to fund SMEs, exporters and investment projects in addition to the purchase of bonds, and led banks to reduce the asset-liability exchange rate imbalance in their balance sheets.