October 4, 2013 / 6:44 AM / 4 years ago

Turkish central bank extends reserve requirements to financing firms

ISTANBUL, Oct 4 (Reuters) - Turkey’s central bank said on Friday it was extending regulations on reserve requirements to financing companies in addition to banks as part of its efforts to better control loan growth.

Financing firms, which offer loans for consumers purchases such as houses and cars, form a rapidly growing sector in Turkey. Loan growth for banks was running at 29 percent as of last month, almost double the central bank’s reference level.

The financing firms will be subject to the same reserve requirement ratios as banks, 11 percent for lira funds and 11.9 percent for foreign exchange funds.

The central bank said around 10 billion lira ($5 billion) of funds would be subject to the reserve requirements, and that financing firms would hold around 900 million lira of reserves in central bank accounts as a result.

The new rules will take effect in December, with companies required to transfer the required reserves to the central bank by Dec. 20.

$1 = 2.0029 lira Reporting by Seda Sezer; Editing by Nick Tattersall, John Stonestreet

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