ANKARA: The Turkish central bank has introduced reserve requirement based on loan growth, a regulation published on the official gazette showed early on Thursday, a day after the bank took additional tightening measures.

According to the regulation, lira reserve requirement will be introduced to lenders for the part of the loans that exceeds a monthly growth rate of 2% for one year.

Turkiye central bank adjusts banks’ monthly loan growth rates for securities maintenance

The bank’s move came after it took steps to curb lending and discourage banks’ demand for foreign currency in the face of a sliding lira and some expectations that it may need to raise interest rates further to cool inflation.