The Central Bank of the Republic of Türkiye raised the growth limit for loans to small and medium-sized enterprises to 5% from 4.5%. The measure, announced on 1 October, applies within the bank’s reserve-requirement framework. It also lowered the ratios for maintaining Turkish-lira required reserves in blocked accounts, saying the changes would support macrofinancial stability and banks’ liquidity management.
The decision reverses part of a tightening package introduced in May. At that time, the central bank reduced the eight-week SME loan-growth limit from 5% to 4.5%, while also lowering limits for consumer, overdraft and non-SME corporate lending. The October statement did not announce changes to those other credit limits and did not quantify the new blocked-account reserve ratios.
TARGETED CREDIT AND LIQUIDITY ADJUSTMENT
The higher ceiling gives banks more room to expand eligible Turkish-lira lending to smaller businesses within the macroprudential framework. It is a regulatory limit rather than a lending target or commitment by individual banks. Lower blocked-account ratios can also release part of the liquidity otherwise immobilised for reserve compliance, although the central bank published no estimate of the amount involved.
Reuters described the move as an easing of the SME loan-growth and reserve rules. The change did not alter the headline policy rate, which the Monetary Policy Committee held at 37% on 10 September, alongside an overnight lending rate of 40% and borrowing rate of 35.5%. The distinction allows the bank to adjust credit composition and liquidity management without changing the broader interest-rate corridor.
POLICY STANCE AND NEXT REVIEW
At its September meeting, the committee said it would maintain a tight stance until price stability was achieved and could reinforce monetary transmission with additional macroprudential measures. The latest decision fits that toolkit by easing one channel for SME credit while leaving the main rate unchanged. It also follows the bank’s earlier use of differentiated growth limits for consumer, SME and other corporate loans.
Banks and borrowers will need detailed implementation guidance to assess how much liquidity the lower blocking ratios release and whether the higher ceiling produces additional SME lending. The next scheduled policy-rate decision is due on 22 October, followed by the meeting summary on 30 October. Those releases should indicate whether the targeted adjustment remains separate from the headline stance or is followed by further recalibration.