The Effect of Different Reserve Requirement Ratio Applications Based on Maturity on TL Deposits
DOI:
https://doi.org/10.63556/tisej.2025.1660Keywords:
Monetary policy, financial stability, reserve requirement ratio, maturity of TL deposits, Fourier structural breakAbstract
The aim of this study is to investigate the impact of the Central Bank of Türkiye's differentiated reserve requirement policy on TL deposit groups. Since no empirical study has been conducted on this topic, it is expected to make a significant contribution to the literature. An empirical analysis is employed using monthly data for the period 2011:9-2025:6 to analyze how relative reserve requirement ratios affect the share of deposits with different maturity structures. Fourier unit root tests and Fourier ADL cointegration test, which consider structural breaks, have been used. In addition, FMOLS estimator and error correction model have been employed to estimate the short- and long-term relationships between variables. The Fourier ADL cointegration test results indicate the existence of a significant long-term relationship between reserve requirement ratios and TL deposit groups longer than 3 months. The FMOLS estimator and the error correction model also confirm the Fourier ADL cointegration findings. On the other hand, there is no significant relationship between TL deposit types with maturities of 3 months or less and the reserve requirement ratio. These findings suggest that the significant differentiation of reserve requirement ratios for TL deposit groups with maturities longer than 3 months is a contributing factor. Furthermore, it is believed that assigning many objectives to reserve requirements and inconsistency between goals may also lead to this result. Therefore, it would be beneficial for the central bank to simplify its reserve requirement policies.
References
Agenor, R. P., Alper, K., & Pereira da Silva, L. (2015). External Shocks, Financial Volatility and Reserve Requirements in an Open Economy. Working Papers Series 396, Central Bank of Brazil, Research Department.
Aksoy, C. N. (2018). Merkez Bankası Para Politikası Araçlarının Banka Kârlılık Performansları Üzerindeki Etkisi. (Doktora Tezi). İstanbul Ticaret Üniversitesi, Sosyal Bilimler Enstitüsü, İstanbul.
Alper, K., Binici, M., Demiralp, S., Kara, H., & Özlü, P. (2018). Reserve Requirements, Liquidity Risk, and Bank Lending Behavior. Journal of Money, Credit and Banking, 50(4), 817-827.
Armantier, O., Ghysels, E., Sarkar, A., & Shrader, J. (2013). Discount Window Stigma during the 2007-2008 Financial Crisis. Staff Report No. 483, Federal Reserve Bank of New York.
Atalay, E. Mağın, Y. (2022). Türkiye’de Zorunlu Karşılık Oranının Kalkınma ve Yatırım Bankalarının Kârlılığına Etkisi. International Journal on Social Sciences, 7(4), 154-173.
Banerjee, A., Dolado, J., & Mestre, R. (1998). Error‐correction Mechanism Tests for Cointegration in a Single‐Equation Framework. Journal Of Time Series Analysis, 19(3), 267-283.
Banerjee, P., Arčabić, V., & Lee, H. (2017). Fourier ADL Cointegration Test to Approximate Smooth Breaks with New Evidence from Crude Oil Market. Economic Modelling, 67, 114-124.
Becker, R., Enders, W., & Lee, J. (2006). A Stationarity Test in the Presence of an Unknown Number of Smooth Breaks. Journal of Time Series Analysis, 3(5): 381-409.
Bianchi, J. (2011). Overborrowing and Systemic Externalities in the Business Cycle. American Economic Review, vol. 101, 3400-26.
Brei, M., & Moreno, R. (2018). Reserve Requirements and Capital Flows in Latin America. BIS Working Papers, No:741.
Bruno, V., & Shin, H. S. (2015). Capital Flows and the Risk-Taking Channel of Monetary Policy. Journal of Monetary Economics, vol. 71(C), 119-132.
Chen, J. H., & Huang, Y. F. (2013). The Study of the Relationship between Carbon Dioxide (CO2) Emission and Economic Growth. Journal of International and Global Economic Studies, 6(2), 45-61.
Cordella, T., Federico, P., Vegh, C., & Vuletin, G. (2014). Reserve Requirements in the Brave New Macroprudential World. Policy Research Working 6793, World Bank.
Enders, W., & Lee, J. (2012). A Unit Root Test Using a Fourier Series to Approximate Smooth Breaks. Oxford Bulletin of Economics and Statistics, 74(4), 574-599.
Erdal, B., & Pınar, A. (2018). Enflasyon Hedeflemesi Rejiminde Fisher Etkisinin Geçerliliği: Türkiye’den Ampirik Sonuçlar. Eskişehir Osmangazi Üniversitesi İİBF Dergisi, 13(3), 1-12.
Eren, B. (2024). Hangi Kredi Türü Üretimi Daha Çok Destekliyor: Ticari Krediler Mi Tüketici Kredileri Mi? International Journal of Commerce, Industry and Entrepreneurship, 4(1), 44-62.
Glocker, C., & Towbin, P. (2012). Reserve Requirements for Price and Financial Stability: When are they Effective? International Journal of Central Banking, 8, 65-114.
Göçer, İ., Mercan, M., & Peker, O. (2013). Kredi Hacmi Artışının Cari Açığa Etkisi: Çoklu Yapısal Kırılmalı Eşbütünleşme Analizi. Istanbul University Econometrics and Statistics E-Journal, (18), 1-17.
Gray, S. (2011). Central Bank Balances and Reserve Requirements. Working Paper No. 11/36, International Monetary Fund.
Gregory, A. W., & Hansen, B. E. (1996). Residual-Based Tests for Cointegration in Models with Regime Shifts. Journal of Econometrics, 70(1), 99-126.
Gujarati, D, N. (1999). Basic Econometrics, İstanbul: Literatür Yayıncılık.
Hatemi-J, A. (2008). Tests for Cointegration with Two Unknown Regime Shifts with an Application to Financial Market Integration. Empirical Economics, 35(3), 497-505.
Izquierdo, A., Loo-Kung, R., & Rojas-Suarez, L. (2013). Macroprudential Regulations in Central America. Working Paper No. 318, Center for Global Development.
Lee, J., & Strazicich, M. C. (2003). Minimum Lagrange Multiplier Unit Root Test with Two Structural Breaks. Review of Economics and Statistics, 85(4), 1082-1089.
Montoro, C., & Moreno, R. (2011). The Use of Reserve Requirements as a Policy Instrument in Latin America. BIS Quarterly Review (March), 53-65.
Ng, S., & Perron, P. (2001). Lag Length Selection and the Construction of Unit Root Tests with Good Size and Power. Econometrica, 69, 1519-1554.
Özatay, F. (2011). Merkez Bankasının Yeni Para Politikası: İki Hedef -Üç Ara Hedef- Üç Araç. İktisat, İşletme ve Finans, 26 (302), 27-43.
Özbek, S., & Naimoğlu, M. (2022). Çevre Kalitesi-Ekonomik Karmaşıklık İlişkisi: Türkiye Ekonomisi Üzerine Fourier Eşbütünleşme Analizi. İstanbul İktisat Dergisi, 72(1), 407-431. https://doi.org/10.26650/ISTJECON2022-1061837
Perron, P. (1989). The Great Crash, the Oil Price Shock, and the Unit Root Hypothesis. Econometrica: Journal of the Econometric Society, 57(6), 1361-1401.
Phillips, P. C., & Hansen, B. E. (1990). Statistical Inference in Instrumental Variables Regression with I(1) Processes. The Review of Economic Studies, 57(1), 99-125.
Rodrigues, P. M., & Robert Taylor, A. M. (2012). The Flexible Fourier Form and Local Generalised Least Squares De‐trended Unit Root Tests. Oxford Bulletin of Economics and Statistics, 74(5), 736-759.
TCMB. (2007). Mevduat ve Katılım Fonlarının Vadeleri ve Türleri Hakkında Tebliğ. Erişim adresi: https://tcmb.gov.tr/wps/wcm/connect/5f1a77a3-155d-4bba-b85f-43c803497080/Mevduat+ve+Kat%C4%B1l%C4%B1m+Fonlar%C4%B1n%C4%B1n+Vadeleri+ve+T%C3%BCrleri+Hakk%C4%B1nda+Tebli%C4%9F+-+25.11.2023.pdf?MOD=AJPERES&CACHEID=ROOTWORKSPACE-5f1a77a3-155d-4bba-b85f-43c803497080-oMfOHZx
TCMB. (2010). Zorunlu Karşılıklara İlişkin Basın Duyurusu. Erişim adresi: https://tcmb.gov.tr/wps/wcm/connect/c6610364-9ecc-456a-a2ec-0c7367868edd/DUY2010-68.pdf?MOD=AJPERES&CACHEID=ROOTWORKSPACE-c6610364-9ecc-456a-a2ec-0c7367868edd-m3fC7ST
TCMB. (2012a). Finansal İstikrar Raporu (FİR), Sayı:14.
TCMB. (2012b). Finansal İstikrar Raporu (FİR), Sayı:15.
TCMB. (2013). Finansal İstikrar Raporu (FİR), Sayı: 16.
TCMB. (2020). Zorunlu Karşılıklara İlişkin Basın Duyurusu, Sayı:71. Erişim adresi: https://www.tcmb.gov.tr/wps/wcm/connect/tr/tcmb+tr/main+menu/duyurular/basin/2020/duy2020-71
TCMB. (2022). Zorunlu Karşılıklara İlişkin Basın Duyurusu, Sayı:24. Erişim adresi: https://tcmb.gov.tr/wps/wcm/connect/TR/TCMB+TR/Main+Menu/Duyurular/Basin/2022/DUY2022-24
TCMB. (2025). Elektronik Veri Dağıtım Sistemi. Erişim adresi: https://evds2.tcmb.gov.tr/
Vargas, H., Varela, C., Betancourt, R. Y., & Rodríguez, N. (2010). Effects of Reserve Requirements in an Inflation Targeting Regime: The Case of Colombia. Bank of the Republic Colombia Documents, 14476, https://elischolar.library.yale.edu/ypfs-documents/14476
Yavuzarslan, N. (2011). Finansal İstikrar ve Zorunlu Karşılıklar. TCMB Uzmanlık Yeterlilik Tezi, Ankara.
Yılancı, V., İslamoğlu, E., Yıldırımalp, S., & Candan, G. (2020). The Relationship between Unemployment Rates and Renewable Energy Consumption: Evidence from Fourier ADL Cointegration Test. Alphanumeric Journal, 8(1), 17-28. https://doi.org/10.17093/alphanumeric.669380
Zivot, E., & Andrews, D. (1992). Further Evidence of Great Crash, the Oil Price Shock and Unit Root Hypothesis. Journal of Business and Economic Statistics, 10, 251-70.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Third Sector Social Economic Review
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
