Newsletter & Legal Alerts

FURTHER AMENDMENT TO THE CAPITAL MOVEMENT CIRCULAR

The Central Bank of the Republic of Turkey introduced an explanatory provision to the Capital Movements Circular dated May 2, 2018 (the “Circular”) regarding the calculation of the credit balance of Turkish residents with the letter of Ministry of Treasury and Finance dated August 26, 2020 and numbered 470196 (the “Letter”).

Published on: September 2020
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AMENDMENT TO THE CAPITAL MOVEMENT CIRCULAR

The provisions of the Capital Movements Circular of the Central Bank of the Republic of Turkey (the “Circular”) regarding the foreign currency denominated loans and funds to be extended by banks and factoring companies have been amended pursuant to the letter dated July 20, 2020 and numbered 394743 of the Ministry of Treasury and Finance (the “Letter”).

Published on: July 2020
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POSTPONEMENT OF SEVERAL PROVISIONS OF BANKS’ IT SYSTEMS AND ELECTRONIC BANKING SERVICES REGULATION

The Banking Regulation and Supervision Agency (the “BRSA”) introduced a new amendment to the Regulation on Information Systems of Banks and Electronic Banking Services (published in the Official Gazette dated March 15, 2020 and numbered 31069) (the “Regulation”), as published in the Official Gazette on June 20, 2020 and numbered 31161 (the “Amendment”), by taking into account the extraordinary workload encountered by banks due to the Covid-19 outbreak.

Published on: July 2020
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ADDITIONAL REPORTING REQUIREMENT ON FOREIGN EXCHANGE POSITIONS

The Central Bank of the Republic of Turkey (the “CBRT”) recently increased the frequency of the reporting requirement set forth under the Regulation on the Procedure and Principles regarding the Central Bank of the Republic of Turkey’s Monitoring of Transactions Affecting the FX Position (the “Regulation”) through an official letter sent to the relevant Turkish companies (the “Letter”). The purpose of this requirement is to monitor the general trends in the country's economy and the effects of the applied economic policies by the CBRT.

Published on: July 2020
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THE NEW ERA IN TURKISH BANKING AGREEMENTS

The Law No. 7247 Amending Certain Laws and Decrees (the “Amending Law”) has been published in the Official Gazette dated June 26, 2020 and numbered 31167 with immediate effect. One of the remarkable purposes of the Amending Law is facilitating the provision of banking services by introducing electronic agreements to be executed between financial institutions and their customers.

Published on: June 2020
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THE BANKING REGULATION AND SUPERVISION AGENCY DECISION ON THE CALCULATION OF ASSET RATIO BY BANK

The Banking Regulation and Supervision Agency (the “BRSA”), the Central Bank of Republic of Turkey (the “CBRT”) and the Banks’ Association of Turkey (the “BAT”) have swiftly taken several measures after the declaration of the first confirmed COVID-19 case in Turkey on March 11, 2020 in order to mitigate the outbreak’s impact on the financial markets and soften expected disruptions in commercial activities that may be caused by COVID-19, as discussed in our previous Legal Alerts No. 3/2020 and No. 2/2020 Such measures are set forth by the regulators in order to provide flexibility to financial institutions (the “FIs”) to ensure (i) financial stability of the FIs and (ii) meet FIs customers’ needs such as facilitating cash flow of individuals and SMEs which are likely to be the most affected by this outbreak and ultimately to mitigate the macroeconomic effects and risks arising from COVID-19 in financial markets.
This legal alert will discuss the recent decision of the BRSA which provides further clarification on the calculation of asset ratio (the “AR”) by banks.

Published on: May 2020
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0.5% Limit on Turkish Lira Transactions

The Banking Regulation and Supervision Agency (the “BRSA”) has made an announcement on May 5, 2020 and stated that, in order to ensure that Turkish Lira (“TRY”) resources are used efficiently and mainly in meeting the financing needs of the public and private sector in a period when economic activities slow down due to the global COVID-19 outbreak and the real sector is in difficulty in terms of production and employment, total amount of banks’ all TRY placement, TRY deposit, TRY repo, and TRY loan transactions with foreign counterparties, including foreign subsidiaries which are credit or financial entities subject to consolidation with Turkish banks and foreign branches of Turkish banks (the “Transactions”), cannot exceed 0.5% of the banks’ most recently calculated regulatory equity pursuant to the Resolution of the Banking Regulation and Supervision Board dated May 5, 2020, and No. 9010.

Published on: May 2020
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The BRSA Regulation on Manipulation and Misleading Transactions

The Banking Regulation and Supervision Agency (the “BRSA”) published the Regulation on Manipulation and Misleading Transactions in Financial Markets (published in the Official Gazette dated May 7, 2020, No.31120) (the “Regulation”) today with immediate effect in accordance with Article 76/A of the Banking Law (Law No. 5411) (published in the Official Gazette dated November 1, 2005, No. 25983 (bis)) (the “Banking Law”).

Published on: May 2020
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ADDITIONAL MEASURES TAKEN BY THE PRESIDENCY OF THE REPUBLIC OF TURKEY IN THE BANKING SECTOR REGARDING THE COVID-19 OUTBREAK

The Banking Regulation and Supervision Agency (the “BRSA”), the Central Bank of Republic of Turkey (the “CBRT”) and the Banks’ Association of Turkey (the “BAT”) have swiftly taken several measures after the declaration of the first confirmed COVID-19 case in Turkey on March 11, 2020 in order to mitigate the outbreak’s impact on the financial markets and soften expected disruptions in commercial activities that may be caused by COVID-19, as discussed in our previous Legal Alert. Such measures are set forth by the regulators in order to provide flexibility to financial institutions (the “FIs”) to ensure (i) financial stability of the FIs and (ii) meet FIs customers’ needs such as facilitating cash flow of individuals and SMEs which are likely to be the most affected by this outbreak and ultimately to mitigate the macroeconomic effects and risks arising from COVID-19 in financial markets.
This legal alert will discuss the additional measures taken by the regulatory authorities.

Published on: April 2020
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Clarification Letter on Extension of FX Loans to Turkish Citizens issued by the CBRT

Following vast amendments introduced under the Turkish FX legislation since 2018, Turkish resident individuals are no longer entitled to utilize FX denominated loans from abroad or within Turkey. However, the situation of Turkish citizens who are not resident in Turkey was unclear and the Central Bank of the Republic of Turkey (the “CBRT”) has issued a letter on September 30, 2019 (the “Letter”) in order to clarify FX loan utilizations of such Turkish citizens who are not resident in Turkey.

Published on: September 2019
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