Turkey: Bankers and state collide on reserve ratios

	“What kind of police-type measures could be imposed against a bank? This is like a joke. Isn’t this a state of law?” Ersin Ozince, Isbank

Turkey’s bank chief executives are up in arms over recent moves by the government and central bank to increase their reserve ratio requirements. The central bank controversially increased RRRs to 15% while lowering interest rates in an unorthodox policy mix that began last December. It also sought to limit loan growth at the banks.