Regulation on credit usage from the BRSA: Limit removed

The Banking Regulation and Supervision Agency (BRSA) has lifted the foreign currency asset limit for companies subject to independent audit regarding their use of TL credit.

The BRSA has introduced a credit regulation for companies subject to independent audit as part of coordinated macroprudential simplification steps to be taken to strengthen financial stability and ensure the effective functioning of the credit system.

Accordingly, it has removed the foreign currency asset limit for companies subject to independent audit in their use of TL credit.

Under the previous regulation, the use of TL credit was restricted for companies subject to independent audit whose foreign currency asset amounts exceeded specified thresholds.

When companies used credit despite exceeding the thresholds, their credit usage was restricted, and they could borrow with a 500 percent risk weight.

With the latest decision, the foreign currency asset position will no longer be considered when granting TL credit to companies subject to independent audit.

News Source: AA