Fractional-reserve banking

The Turkish Central Bank raised reserve requirement ratios for foreign currency and precious metal deposit accounts on Nov. 8.

Announcing the move in the Official Gazette, the bank increased the ratio by 200 basis points for all such accounts.

The Turkish Central Bank's total reserves stood at $117.8 billion in August, marking an 11.3% increase compared to the previous month, the bank announced on Sept. 28. 

Official reserve assets jumped 11.3%, according to the bank's international reserves and foreign currency liquidity report.

The Central Bank of the Republic of Turkey (CBRT) on Nov. 27 revised its regulations on reserve requirements to improve the effectiveness of the monetary transmission mechanism in the country.

In line with its main objective of price stability through monetary tightening, the bank decided to simplify its reserve requirement regulations, it underlined in a written statement.