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Plans to Curb Lira Protection Tool Risks Banking Profits, Lenders Warn

TURKEY
  • Bloomberg report that Turkish lenders are complaining that tough targets imposed by authorities to curb a tool designed to support the lira are putting at risk banking sector profits.
  • Commercial lenders voiced their misgivings to top officials from Turkey’s central bank in a teleconference on Monday, people familiar with the matter said, asking not to be identified as the meeting wasn’t public.
  • According to a decree published in the official gazette Sunday, commercial banks whose clients don’t convert a certain ratio of their KKM deposits to regular lira accounts will have to purchase additional government bonds. (See more here: https://marketnews.com/turkey-makes-adjustments-to-encourage-shift-from-fx-protected-deposit-accounts).

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