(Bloomberg) -- Turkey took a further step toward mainstream economic management by abolishing a rule that compelled lenders to extend credit and buy government debt. The lira and bank shares rose on the news.Just over two weeks into a sweeping overhaul of Turkey’s decision-making, the banking regulator announced on Tuesday that it will repeal the so-called asset ratio from Dec. 31, “as a continuation of the normalization steps.”Policies are turning more orthodox after Recep Tayyip Erdogan’s ouster of the central bank governor this month and the resignation soon after of the president’s son-in-law as economy minister. The rule removed on Tuesday set a performance indicator for commercial banks and failure to meet those requirements could result in fines.Turkey Plans Another Tweak to Key Banking Ratio to Boost LiraThe Turkish regulator has eased the rule since it was introduced earlier this year as authorities tried to unwind stimulus policies that had unleashed a credit boom.. A record pace of lending by commercial banks resulted in higher imports and a wider trade gap, putting more strain on the lira, which lost around a quarter of its value against the dollar this year.“This is a good and expected step toward normalization,” said BGC Partners banking analyst Cagdas Dogan. “The move should be positive for asset liability management of banks and help determine pricing of deposits and loans more freely at market conditions.”The lira erased losses after the announcement and was trading 0.1% stronger at 7.8756 per dollar at 11:05 a.m. in Istanbul. Banking stocks rallied, pushing an index tracking lenders’ shares up by 3.5%, according to data compiled by Bloomberg.According to the most recent official data, the average rate on three-month Turkish lira deposits stood at 13.2% as of Nov. 13. Annual inflation has been hovering at just under 12% since July.(Updates with more details in third and final paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.