The Communiqué regarding the Maximum Interest Rates to be imposed on Credit Card Transactions was amended on 16 June 2010 to enter into force as of 1 July 2010. Accordingly, the monthly maximum contractual interest rate and monthly maximum default interest rate for Turkish lira debts arising from credit cards have been reduced, while both rates were kept unchanged for US dollar and Euro debts.

The Decree Regarding Principles to be taken into account by Banks for Information Systems Management was amended on 1 June 2010. In accordance with the amendments concerning the Internal Systems of Banks and its new provisions, the Decree has introduced a stricter regime in order to achieve the continuity and sustainability of bank information systems. There are now more preconditions for Plan for Information Systems Continuity preparation procedures, which will be developed in line with the Operational Continuity Plan. The new amendment also requires the establishment of a secondary centre by banks with different risks to the primary centre and will be used for storing data and system backups.

The Regulation regarding the Internal Systems of Banks was amended on 1 June 2010. The amendment introduced new terms, such as primary and secondary systems, where the latter will ensure the continuity of bank operations if there is a failure with regard to the former. In line with this emphasis on the continuity of operations, the regulation also introduces the system of Operational Continuity Management. To sustain operations or timely recovery in an interruption, it is now obligatory for banks to form an Operational Continuity Management structure. The Regulation establishes that, in light of studies of this structure, a plan will be developed. Potential risks will be eradicated from different interruption scenarios and the plan will identify and suggest solutions to risks. The Regulation also introduces the requirement of a response plan to emergent and unforeseen situations as part of the Operational Continuity Plan.

The Banking Regulation and Supervision Agency (the “BRSA”) issued the Decision regarding the Issuance of Debt Instruments (Decision No. 3665) dated 6 May 2010. The Decision stipulates that banks are permitted to issue notes/bonds in foreign currencies outside Turkey on condition that such instruments are sold to real persons or legal entities resident abroad. The decision also envisages that the borrowing activities of banks by means of issuing bonds/notes shall not be considered as an activity that requires an extension of activities authorization from the BRSA within the scope of Article 4 of the Banking Law No. 5411.

The Communiqué regarding Statutory Reserves was amended on 29 July 2010 to be effective as of 6 August 2010. The Communiqué determines the statutory reserve ratio for Turkish lira liabilities and foreign currency liabilities as 5% and 10% respectively, maintaining the ratio for the former and increasing it for the latter.

Decree No. 32 regarding the Protection of the Value of Turkish Currency and Circular No. I/M of the Turkish Treasury regarding Communiqué No. 2008-32/34 were amended on 9 April 2010. Accordingly, the currencies of Bulgaria, Iran, Romania and Russia were added to the list of foreign currencies that may be purchased and sold by the Central Bank of Turkey.