New warning to banks: Treasury puts the brakes on credit card and overdraft limits

At the Financial Stability Committee meeting chaired by Minister of Treasury and Finance Mehmet Şimşek on January 21, 2026, the credit card and Overdraft Account (KMH) limits assigned by banks to their customers were discussed. Following findings that, in recent times, credit card and KMH limits above the regulatory requirements were being allocated, particularly to individual customers, a call was made to sector representatives to comply with the regulations.

With the rise in credit card and KMH usage, economic management has been closely monitoring the increasing debt despite the debt restructuring opportunity introduced in July. According to legal regulations, the ceilings determined by banks are limited to 4 times the monthly income for credit cards and 3 times for KMH. However, it was stated that some banks have been offering credit card and KMH limits far exceeding these amounts to customers in order to meet year-end sales targets.

It was signaled that while citizens lacking financial awareness are taking on a high debt burden due to this approach, uncontrolled spending could also increase demand-pull inflation. At the committee meeting, the necessity of full compliance with legal limits across the sector was emphasized, and it was reminded that the Banking Regulation and Supervision Agency (BDDK) would impose heavy fines on banks acting in violation of the regulations.

Banks have been instructed to rapidly reduce all credit card and KMH limits defined for customers above the regulatory levels to legal limits. While customers who were given limits 5 to 10 times their income will be directly affected by these regulations, users within the standard limit application are not expected to encounter any changes.

Banks will be required to define limits that do not exceed 3-4 times the monthly income within the framework of the legislation. In the assessment made by the Ministry of Treasury and Finance with sector representatives, the importance of maintaining financial stability and protecting citizens from unnecessary debt was emphasized once again.

It appears that the new era in the banking sector will be shaped by the strict oversight of limits and the disciplining of easy access to credit.

News Source: 12punto