BRSA lowers credit limits: New rates announced

The Banking Regulation and Supervision Agency (BRSA) has introduced a new regulation regarding the credit limits that development and investment banks can extend.

CREDIT LIMITS LOWERED

According to the BRSA's statement, while İstanbul Takas ve Saklama Bankası AŞ (Takasbank) and İller Bankası AŞ are excluded from the scope, the total risk amount of loans that other development and investment banks can extend to a single natural or legal person or risk group, on a consolidated and non-consolidated basis, has been capped at 30 percent of their core capital.

Previously, this ratio was applied between 40 and 60 percent, depending on the nature of the bank.

LOANS TO RISK GROUPS ALSO CAPPED

With the new regulation, the ratio of the total risk amount of loans that banks can extend to the risk group they belong to, relative to their core capital, has also been set at 25 percent.

In the previous practice, this ratio varied between 35 and 55 percent.

TRANSITION PERIOD FOR EXCESSES

The BRSA has granted banks a compliance period in the event that the established credit limits are exceeded.

Accordingly, it has been decided that limit excesses in loans extended to a single natural or legal person or risk groups must be resolved by April 1, 2027. It is stipulated that limit excesses in loans extended to the risk group to which the bank belongs must be terminated by October 1, 2026.

News Source: 12punto