The Turkish Banking Regulation and Supervision Agency (BDDK) has implemented a new regulation regarding the credit limits of development and investment banks. The regulation applies to these institutions on both consolidated and non-consolidated bases.
Under the new rules, the maximum ratio of the total risk amount of loans provided to a real or legal person or risk groups to the core capital of development and investment banks is set at 30%. Previously, this ratio was between 40% and 60%.
New maximum ratio for loans to a real or legal person relative to core capital
The regulation also limits the ratio of the total risk amount of loans provided by development and investment banks to the risk group they belong to, relative to their core capital, to 25%. This follows a previous range of between 35% and 55%.
Istanbul Takas ve Saklama Bankasi AS and Iller Bankasi AS are excluded from the new BDDK regulation.
