In the written statement made by the Banking Regulation and Supervision Agency (BDDK), with the decision of the Banking Regulation and Supervision Agency dated May 5, 2020 and numbered 9010, banks will be banned from abroad to be implemented until the extraordinary conditions arising from the new type of coronavirus (Covid-19) epidemic are eliminated. The total of TL placements, TL deposits, TL repo and TL loans to be made to financial institutions resident abroad, including credit institutions subject to consolidation and their partnerships with financial institution qualifications and their branches abroad, will be limited to 0.5 percent of the banks’ last calculated legal equity. It was reminded that the decision had been made.
As a result of the evaluation made by the Board, in order to ensure that the clearing operations of TL denominated bonds and lease certificate transactions are not negatively affected and that TL denominated securities are traded effectively and efficiently, Foreign Central Depository Institutions (YMSK) defined in the capital markets legislation with the Board decision numbered 9031 dated 20 May 2020 In the statement, it was stated that it was decided that the organizations to be determined by BRSA among ) will be exempt from the limitation in question, and the following was noted:
“Based on this decision, it has been deemed appropriate by the BRSA to exempt the institutions named Euroclear Bank and Clearstream Banking from the said limitation. On the other hand, with the Board’s decision numbered 9031, the banks will also make TL transactions with their branches operating in the Turkish Republic of Northern Cyprus (TRNC) specified in the decision. It has been decided that the TL transactions specified in the Decision to be carried out with the TRNC Central Bank (TRNCMB) and TRNC Development Bank Inc., including the TL transactions and the TL amounts that the said branches are required to keep within the TRNC Central Bank within the scope of reserve requirements, will be exempt from the said limitation. .”
