Turkey: New BRSA Regulation for banks – service change for TRY - update
Clearstream Banking1 informs customers that further to our announcement A20067, and due to liquidity restrictions on the Turkish Lira (TRY), effective
and until further notice, credit facilities are no longer provided within Clearstream Banking’s books.
Following the press release of Banking Regulation and Supervisory Agency (“BRSA”)(bank’s watchdog in Turkey) dated 5 May 2020, until the extraordinary conditions due to COVID-19 are removed, the total of daily money market placement, depot, repo and loans in TRY with the non-resident financial institutions is limited to 0.5% of the latest calculated capital of the bank. The purpose of this decision is to keep the maximum amount of funds within the banking system, to be used for the benefit of individuals and corporations impacted negatively by the COVID-19 crisis.
Impact on customers
Following the above decision, Clearstream Banking must remove customer overdraft credit lines.
We strongly recommend that customers keep a buffer amount in their cash account in TRY considering your securities settlement, trading in BIST and cash transfer activity for the avoidance of possible risks of failed transactions.
Clearstream Banking will be limited to effecting customer settlement with the available funds on customer accounts.
For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.
1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking AG customers using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.