05.08.2026 16:21
The BRSA has limited the credit limit that development and investment banks, except for Istanbul Settlement and Custody Bank Inc. and Iller Bank Inc., can extend to a single person or risk group to 30 percent of core capital, and the credit limit they can extend to the bank's own risk group to 25 percent. Banks have been given until October 1, 2026, and April 1, 2027, to eliminate existing limit exceedances.
According to the decision published by the Banking Regulation and Supervision Agency (BRSA), a new tightening period has begun in the loan granting conditions of banks providing development and investment financing.
With the new regulation, the loan ratios that can be allocated to a single individual, company, or risk group have been lowered, and institutions with limit breaches have been granted a specific timeline to ensure compliance with the legislation.
TWO BANKS EXEMPTED, LIMITS LOWERED
According to the BRSA statement; Istanbul Settlement and Custody Bank Inc. and Iller Bank Inc. were exempted from the application.
For all development and investment banks other than these two institutions, the ratio of the total credit risk they can extend to a real or legal person or to specific risk groups, relative to their core capital, in their consolidated and non-consolidated financial statements, has been changed. The aforementioned ceiling ratio, previously ranging between 40 and 60 percent, has been redefined with the decision so that it cannot exceed the 30 percent level.
CREDIT LIMIT FOR OWN RISK GROUPS REDUCED TO 25 PERCENT
Within the framework of the regulation, cuts have also been made to the credit limits that banks can extend to the risk groups they are directly a part of. This limit, which varied between 35 and 55 percent relative to core capital in the previous period, has been restricted to a maximum of 25 percent under the new regulation.
COMPLIANCE TIMELINE FOR BREACHES CLARIFIED
A liquidation timeline has been announced for banks that extended loans above the legal limits before the regulation. The Banking Regulation and Supervision Agency has stipulated that limit breaches in loans extended to a real or legal person or to external risk groups must be resolved by April 1, 2027. It has been made mandatory for credit breaches provided to the bank's own risk group to be reduced to a level compliant with the legislation by October 1, 2026.