BRSA takes action: Limits on all credit cards are changing

While inflation targets remained unchanged during the presentation of the 3rd inflation report of the year by the Central Bank of the Republic of Turkey (TCMB) today, additional policy measures are expected to be taken to approach the 38 percent level, which appears quite difficult to achieve by the end of the year.

In this direction, while restrictions on credit cards were brought to the table in order to curb inflation and create a cooling effect in the economy, the BRSA took action following the report published by the Interbank Card Center (BKM) and the Banks Association of Turkey (TBB).

One of the clear reflections of the high inflation seen in recent years is evident in the credit card limits offered by banks to their customers, with the latest report showing that 45.3 out of every 100 credit cards have a limit of 100 thousand TL or more.

Furthermore, while the limit risk share determined for this group was 14.5 percent in 2022, this figure rose to 85.5 percent in 2024.

Taking action to prevent problematic situations arising with credit cards, the Banking Regulation and Supervision Agency (BDDK) has implemented a notable change in card limits through an instruction sent to banks.

While it has been learned that the steps to restrict credit cards, which have been on the agenda for months, will be implemented as of this week, journalist Fatih Altaylı issued important warnings regarding the issue based on information he received from the banking sector.

Altaylı reported that the BRSA has sent a letter to all banks warning them to make changes to credit card limits, and shared details on who will be eligible for what credit card limits under the new regulation.

Although there is already legislation on the subject by the BRSA, Turkey's largest private and public banks can still allocate limits in violation of this regulation.

While Turkey has one of the world's most unhealthy balances in terms of monthly income and credit card limit ratios, many users are being granted credit card limits that are 15-20 times their monthly income.

With the instruction sent, high-limit credit cards offered especially to low- and middle-income groups will be placed under review.

It has been learned that banks will begin a comprehensive study on this matter starting tomorrow, and banks that do not adjust their credit card limits will be subject to heavy fines by the BRSA.

Following these restrictions, the level of credit card limits that banks will offer to users as a result of the Central Bank of the Republic of Turkey (TCMB) directives has also emerged.

Regardless of payment performance and credit score, banks will allocate limits to all their customers between 4 and 8 times their monthly income.

With the change, for customers who have been using their current credit card for 1 year or less, the ceiling limit will be 4 times their monthly income. For users who have been using their credit card for more than 1 year and complete their payments on time, banks will have the authority to set a limit of up to 8 times their monthly income.

Credit cards that do not comply with this regulation under current conditions will be identified through reviews, and changes will be made to credit card limits to ensure they align with the new regulation.

BDDK DENIES THE CLAIMS IN QUESTION

Following reports of an alleged instruction regarding card limits sent by the BDDK to banks, officials provided a statement to 12punto.

In its statement to 12punto, the BDDK indicated that no such notice had been sent by them to banks and that there is no regulation regarding credit card limits.