Turkey’s banking legislation has been found to comply with the Third Basel Accord requirements related to risk-based capital and liquidity coverage ratio standards. Turkey’s Banking Regulation and Supervision Agency (“Agency”) has made a series of changes to secondary legislation recently, ensuring the local regulatory framework meets the international benchmark standards established by the Basel Committee on Banking Supervision (“Committee”) after the 2008 global financial crisis.
After the financial crisis in 2008, the Committee took steps to strengthen the global banking sector and published the Third Basel Accord (“Basel III”). Member states are expected to harmonize domestic law with Basel III provisions by 31 March 2019. The Committee introduced the Regulatory Consistency Assessment Program (“RCAP”) in 2012, to assess the extent of legislative compliance in each country with the Basel standards.
Turkey’s first joined the RCAP in September 2015 following which the Agency published a series of amendments for secondary regulations in the Turkish banking sector. Amendments were made in October 2015 (more), January 2016 (more) and February 2016 (more). The Committee published its RCAP assessment reports about Turkey’s compliance on 15 March 2016.
The Committee’s assessment reports find that Turkish banking legislation is fully compliant with the Basel risk-based capital and liquidity coverage ratio standards.
The full text of the Committee’s reports on Turkey can be found at these links:
Information first published in the MA | Gazette, a fortnightly legal update newsletter produced by Moroğlu Arseven.