The banking legislation, which was tightened following the financial crisis of 2001, has become too tight to minimise the exposure of banks to the global crisis. Official authorities, including the BRSA, have expressed their intention to bend the legislation as much as they can in order for the Turkish banking system to get through this rough patch.

Reserves that should be allocated to bad debts and classification of bad debts, as well as liquidity requirements, seem like the most pressing areas and are the focus of the regulatory authorities.

Conditional amnesty for those on the blacklist of the Central Bank, which in effect makes finding financing for these persons nearly impossible, is also on the agenda of the Government.