Banks in Turkey continue to collect short-term deposits with high interest rates

Instead of carrying a balance sheet risk for a long time with the provision of mandatory bonds with a record negative interest rate, banks continue to collect short-term deposits with high interest rates.

Banks are trying to increase the share of TL deposits above 50 and 60 percent by raising interest rates. Because, with the new year, the share of TL deposits in total deposits remains below 50 and 60 percent, banks will have to hold additional mandatory bond reserves up to 12 percent, increasing by an additional 2-7 percent to the current 5 percent.

In banks that remain below the limits, the interest rate on 1-month term deposits exceeds 30 percent, while banks that keep the limit are going to increase the interest rate to prevent deposit flight.