The Turkish Banking Regulation and Supervision Agency (“BRSA”) has made a series of amendments to a range of banking-related Regulations and Communiqués. Changes apply to banks’ internal systems, capital adequacy, liquidity coverage ratio, equity, as well as disclosures related to credit risk reduction techniques and risk management statement. Building on the regulatory overhaul introduced with the changes published in Official Gazette number 29511 on 23 October 2015; the amendments contribute to establishing a more compatible regulatory structure with Basel standards than previously existed in Turkey and were published in Official Gazette number 29599 on 20 January 2016.

The amendments introduce changes to secondary legislation which collectively align Turkish regulation with the standardized approach introduced in 2012 by the Basel Committee’s Regulatory Consistency Assessment Programme, particularly the Third Basel Accord (“Basel III”). Basel III was issued to prevent insufficiency of liquidity caused by risky loans. Member states, including Turkey, are expected to harmonize domestic law with Basel III provisions by 31 March 2019.

Significant changes introduced by the amendments include (source documents only available in Turkish):

Further information and details of related amendments can be found in Edition 10 of the MA | Gazette.

Information first published in the MA | Gazette, a fortnightly legal update newsletter produced by Moroğlu Arseven.