Turkey's banking authority lowered the mandated loan-to-assets ratio for deposit banks to 95 percent, formerly 100 percent. The relaxing of the stimulation policy follows record devaluation of the Turkish Lira against the dollar.
Can the forex loss in Turkey be recovered without sending the bill to the public? If first signs of the establishment of political normalization, democratization and rule of law emerge in a powerful way in Turkey, then the “shrunken” foreign currencies will come back to the system.
If the ruling Justice and Development Party (AKP) sees an increase in erosion of their votes and the increased possibility of losing power in a possible election then it would "use all the ammunition till it is finished" for their own political continuity. But this would indeed mean leaving a “gigantic wreckage” for the citizens of the country.
Turkey's top banking authority received 33 percent more complaints in 2019, compared to the previous year. While majority of grievances were about personal loans, the second biggest topic of issues were debit and credit cards.
The economy management in Ankara may have this thought of stopping the devaluation of the Turkish Lira by wounding the lira’s convertibility but actually it also damages the debt capacity of the Treasury.
Turkey’s banking regulator said on May 20 it would exempt Euroclear Bank and Clearstream Banking from recently-imposed limits on lenders’ lira transactions with foreign financial institutions. The BDDK said the move was meant to protect the clearing of lira-denominated bonds and sukuk, and to ensure Turkish lira securities are traded efficiently.
Turkey’s BDDK bank regulator has dropped a trading ban imposed last week on UBS, Citigroup and BNP Paribas because they have fulfilled foreign exchange obligations promptly, according to a BDDK letter sent to banks on May 11. The short-lived ban was one of a few protective measures adopted by the government on May 7 when the Turkish lira tumbled intraday to 7.269 versus the dollar, its weakest ever.
President Recep Tayyip Erdoğan has filed a complaint against journalist Fatih Portakal over lying and using statements that aim to manipulate people on social media. Following Erdoğan's remarks on a series of orders issued during Turkey's War of Independence, Portakal questioned whether money will be asked from those have deposits or savings, prompting Erdoğan to sue him.
Former deputy prime minister Ali Babacan’s new Democracy and Progress Party (DEVA) announced its board of directors March 31, revealing 18 women among the 50 directors and some seven women out of 21 members of its Central Board of Presidency.
Ali Babacan's unfulfilled desire, the “fiscal rule” theme features in the program of the newly established Democracy and Progress Party’s (DEVA) . Babacan had made preparations to start the practice of fiscal rule in 2010, until Prime Minister Erdoğan shelved this.