Procedures and principles determined for companies to continue their operations

The Regulation on Amending the Regulation on the Establishment and Operating Principles of Savings Finance Companies by the Banking Regulation and Supervision Agency (BRSA) has entered into force.

In a statement made by the BRSA regarding the matter, it was stated that the relevant amendment was made to ensure that savings finance companies can continue their operations within a framework of a healthier and risk-focused approach and to resolve problems encountered in practice.

The statement reported that, in order to prevent delays in allocation payments to be made to customers within the scope of savings finance contracts, a regulation has been introduced regarding when allocation payments will be made, provided that the provisions of the relevant legislation and the conditions agreed upon in the contract remain reserved, and that the Board has been granted the authority to make changes regarding the said period.

Stating that customers have been granted the right to request a change in the subject of the savings finance contract once, in order to protect the rights and interests of customers, the statement provided the following information: "The lower limit for high-amount contracts has been increased by differentiating it according to the subject of financing, and it has also been regulated that, unless a different rate is foreseen by the Board, this limit will be increased each year by the rate of increase in the annual producer price index."

The statement, which conveyed that the rate regarding financing limitations has been increased and that the Board has been granted the authority to change the said limitations or introduce additional limitations on this matter if needed, and to increase and differentiate these limitations on a company basis when deemed necessary, noted that it has been regulated that the procedures and principles applied to banks regarding the acquisition and transfer of shares will be applied by analogy for savings finance companies whose shares are traded on the stock exchange.

Stating that it has been decreed that the procedures and principles regarding the effective execution of risk management activities will be regulated by the Board in the coming period, the statement continued as follows:

"A risk group definition has been made so that companies can continue their operations in a secure manner and so that the risks they undertake can be monitored and controlled; in addition to this, in order to prevent risk concentration, procedures and principles have been determined regarding the financing that companies can provide to risk groups and to the risk group they belong to and its members. Furthermore, a transition period has been granted to companies for compliance with the newly introduced limitations regarding risk groups and members."

News Source: 12punto