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TALAYINSIGHT
RegionTürkiye and Its Neighbourhood

MediumIV Macro Policy & Sovereign Debt1 October 2026, Thursday

CBRT raises the growth cap on SME lending to 5%

In announcement no. 2026-43, published on the evening of 1 October, the CBRT raised the growth cap on lira loans to SMEs from 4.5% to 5%. The same announcement also cut the blocking ratios on lira reserve requirements.

Location: ANKARA

The blocking ratio is the share of a bank's required reserves that is held at zero interest. Bloomberg HT reported on 1 October that the ratio fell from 40% to 35% for banks with assets above 500 billion lira. For banks with assets of 100–500 billion lira, it fell from 30% to 15%. According to Ekonomim, the SME step is meant to ease the real sector's access to finance. The cut in the blocking ratio is intended to give banks flexibility in managing liquidity.

Ekonomi Gazetesi reported on 23 May that the CBRT had lowered the same cap from 5% to 4.5% for 8-week periods on that date. The new decision reverses that tightening. The step came in a week when the net reserve excluding swaps fell by 16 billion dollars over a month and the fund crisis spread to the banking sector. With it, the CBRT has eased its tight stance in the credit channel for the first time.

Talay assessment

Bottom line

The CBRT has reversed the 0.5-point SME tightening it made in May and halved the blocking ratio for mid-sized banks. This is a targeted easing that provides liquidity to the banking sector without changing the policy rate. Its timing, in the week the fund crisis reached the banks, shows that the priority has temporarily shifted to financial stability.

Likely effects

  • Bank liquidityPositiveWeeks

    Cutting the blocking ratio from 30% to 15% for banks with assets of 100–500 billion lira increases the free lira liquidity of mid-sized banks.

  • SME financingPositive1–6 months

    Raising the growth cap to 5% leaves room for more lira lending to SMEs within each 8-week period.

  • DisinflationNegative1–6 months

    The easing in the credit channel coincides with fuel prices rising after the end of the sliding-scale tax mechanism. It could weaken the effect of the tight stance.

Possibilities, ranked

  1. 1
    Targeted easing stays limited55%

    The CBRT leaves rates and other credit caps unchanged, and the step remains temporary liquidity support against the fund crisis.

    Watch: The October Monetary Policy Committee decision and new macroprudential announcements

  2. 2
    Easing widens30%

    If the crisis spreads further to banks, commercial credit caps are also eased and additional liquidity steps follow.

    Watch: A possible change to the credit cap for large businesses

  3. 3
    Step is reversed15%

    If September inflation exceeds expectations, the CBRT tightens credit growth again.

    Watch: September CPI data due on 3 October

Probabilities are calibrated judgement based on the sources, not measurement, and are revised as new information arrives. Not investment advice.

Market reaction

Indicators affected

  • SME loan growth cap▲ 4.5% → 5%
  • Blocked ratio (assets >500bn lira)▲ 40% → 35%
  • Blocked ratio (100–500bn lira)▲ 30% → 15%

Sources

  1. Bloomberg HT — CBRT raises the growth cap on SME loans to 5%
  2. Ekonomim — Reserve requirement and credit step from the CBRT: SME cap raised to 5%
  3. AA — CBRT raises the growth cap for SME loans from 4.5% to 5%
  4. Ekonomi Gazetesi — Central Bank measures supporting macro-financial stability
  5. Bloomberg HT — Decline in CBRT reserves keeps gathering pace