The decision of the institution on 9 February 2020 is that one leg of the banks with the residents abroad, the other leg of which is TL and TL purchase in term In order to limit the sum of money swaps, forward, options and other derivative transactions to be made in the direction of 10% of the legal equity of the banks that they have calculated recently, 75% of the transactions between 90 and 360 days, and 50% of the transactions with 360 days and above. was to be taken into account.
Drawing attention to the imbalances and rising risks in the global markets due to the COVID-19 outbreak, the BRSA made the following changes for TL purchases in the future in order to manage risks and maintain financial stability:
– The limitation determined in proportion of 10% of the own funds is redefined as 1%.
– Removal of different consideration rates according to the term used in the calculation of the transactions included in the limitation.
– If the transactions in question are requested to be spoiled for any reason before the agreed term, or if the term is requested to be extended, obtaining the written approval of the Authority.
In addition, one leg of the banks with foreign residents, whose foreign currency is the other leg of TL and the remaining seven days or less, as stated in the press release dated 18/12/2019, TL selling in term The decision that the sum of money swap, forward, option and other derivative transaction amounts cannot exceed 10% of the legal equity they have calculated recently has also been amended.
Accordingly, the ratio of the total amount of transaction in question to the most recently calculated legal equities of banks is 1% for transactions 7 days to maturity on any calendar day, 2% for transactions 30 days to maturity and 10% for transactions 1 year to maturity. It was stated that it was decided not to exceed. In addition, for any reason whatsoever, in the event that the said transactions are requested to deteriorate before the agreed term, or if it is requested to be extended, written approval will be required from the BRSA.
