Background message from Karahan. "We are following the developments closely"

Fatih Karahan, Governor of the Central Bank of the Republic of Turkey (CBRT), made a presentation at the "Economy Meeting" event organized by the Young Businessmen Association of Türkiye (TÜGİAD) Ankara.

Karahan stated that they closely follow the developments in the fund market and its interaction with the banking system and other financial markets.

Evaluating the effects of the fund investigation, Karahan said, "When we look at portfolio preferences after the recent fund market developments, we see that the confidence in the financial system and the Turkish Lira continues strongly. As a matter of fact, with the effect of our tight monetary policy stance, our supportive macro-prudential tool set and these measures we have taken, Turkish Lira deposits increased strongly. We saw a limited increase in foreign currency deposits in the corporate sector with a fluctuating course." he said.

Stating that they closely follow the developments in the fund market, Karahan said, "We closely follow the interaction of the developments in the fund market with the banking system and other financial markets. Price stability and financial stability are two elements that complement each other. In this context, we reviewed the liquidity opportunities, taking into account these developments in the financial markets. We increased the amount of funding we provided through weekly repo auctions. We updated the borrowing limits of banks in the interbank money market. We reduced the collateral discount rates. In addition, in order to support macrofinancial stability and liquidity management of banks, we reviewed the liquidity opportunities. "We made changes in the provisioning application. We provided banks with flexibility in liquidity management by reducing the blocked facility rates in Turkish lira required reserves and increased the loan growth limits for SME loans." he said.