Reuters are reporting that the CBRT have.....>

TURKEY: Reuters are reporting that the CBRT have cut the remuneration rate on

required reserves from 13% to 8% as of October 4.

- Required reserves are the legally required reserves that banks have to hold at

the central bank for regulatory purposes. It appears as though this is part of a

wider change that the level of minimum reserves required is lower if banks lend

out more (so the same kind of aim of the TLTRO). As part of that move the rate

paid for those minimum reserves is being lowered from 13% to 8%. So this change

in remuneration rate in isolation is bad for bank profitability (which would be

negative for the economy). But the CBRT are hoping that the banks will be

incentivised to lend out more so they are hoping the overall package should be

positive.