Amendment to the Regulation on Loan Operations of Banks
The Regulation on the Amendment to the Regulation on Loan Operations of Banks (“Regulation”) by the Banking Regulation and Supervision Agency (“BRSA”) has entered into force through publication in the Official Gazette dated 08.07.2021 and numbered 31535. With the said Regulation certain paragraphs and new terms have been introduced. The relevant amendments are as follows:
- With the Regulation, the concept of troubled debt was introduced and defined as restructured receivables and non-performing loans.
- Regarding the release of troubled loans, banks are obliged to establish ‘settlement units’ and create ‘troubled debt strategy’.
- Establishing policies regarding the settlement of troubled debts, ensuring their implementation and taking all necessary measures are listed among the duties and responsibilities of the board of directors of the banks.
- The banks were obliged to create and submit troubled their debt strategies to the BRSA and to establish settlement units until 31.12.2021. The BRSA has been authorized to extend this period up to 6 months.
Please find the Turkish version of the relevant Regulation here.
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