© Reuters. A logo of the Turkish Central Bank is displayed at the entrance to the bank's headquarters in Ankara
ISTANBUL (Reuters) – Turkey has revoked the requirement that the central bank's deputy governors have 10 years of experience and dropped a rule that banks set aside 20% of annual profits, the official gazette showed on Sunday.
According to a decree published in the Official Journal, signed by President Tayyip Erdogan, the phrase "at least ten years of work related to their jobs" was deleted from the Central Bank Act.
The same decree decreed that 20% of the bank's annual profit should be reserved as a reserve fund.
"The accumulated reserve funds can be distributed annually by participating in the profit, with the exception of the reserve fund, which is deducted from the profit of the previous year," says the decree.
In May, the bank announced that it generated an annual net profit of 44.73 billion lira ($ 6.52 billion) in 2019.
Last month, Vakifbank, Turkey's fourth largest lender, triggered a social media storm after appointing a former Olympic wrestling star to its board.
The state lender Vakifbank named Hamza Yerlikaya, a Greco-Roman wrestler in the 1990s, on June 12 as an independent board member, the bank said in a stock exchange listing. Yerlikaya acts as an advisor to President Erdogan and as Deputy Minister for Youth and Sports.
In the same decree, the CBRT was also given the opportunity to immediately access the information from the banks.
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