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The Banking Regulation and Supervision Agency increased the limits on swap transactions with foreign banks.
According to the BRSA statement, the currency swap operations, forwards, options and other derivatives that banks will carry out in the sense of TL sales with foreign residents were regulated, except for operations with foreign credit institutions and their companies subject to consolidation.
Consequently, the ratio between the total of said transaction and the last calculated legal equity of the banks is 5 percent instead of 2 percent for transactions with 7 days due, 10 percent instead of 5 percent for transactions with 30 days to expire, 20 percent for transactions with 1 year remaining until expiration. instead, it was decided to re-determine it at 30 percent.
Normalization steps in progress
BRSA limits swap limits to 1 percent of share capital in April. As of July, normalization steps began to be seen regarding this regulation. With the declaration made in July, international development banks were exempted from the cap limitation. With the announcement made in September, swap limits were increased. Thus, with the latest announcement, the limits on swap operations with foreign banks were increased for the second time within the scope of the normalization steps.
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