The Banking Regulatory and Supervisory Authority (“BRSA“) decreased the maximum term of consumer loans from 60 months to 36 months, through its decision dated September 4, 2020 and No. 9131 (“Decision“).
What Does the Decision Say?
- The BRSA’s Decision changes the maximum term of consumer loans subject to Article 12/A of the Regulation on Credit Transactions of Banks (“Credit Transaction Regulation“) and Article 11/A of the Regulation on Establishment and Operation Principles of Financial Leasing, Factoring and Financing Companies (“Financial Institutions Regulation“).
- The Decision decreases the maximum term of consumer loans extended by banks under the Credit Transaction Regulation, and financial leasing, factoring and financing companies under the Financial Institutions Regulation to 36 months from 60 months.
The BRSA aims to stabilize the increase in consumer loans and expand domestic savings with its new measure.