Banking Regulatory and Supervisory Authority Introduces New Amendments

Following the publication of the Official Gazette dated 04.02.2022 and numbered 31740, the Banking Regulatory and Supervisory Authority (“BRSA”) made amendments regarding the banking sector which can be summarized below:

• BRSA published the Regulation Amending the Regulation on the Calculation of the Liquidity Coverage Ratio of Banks. Within this amendment, it is stipulated that the secured securities issued by the bank, its subsidiaries, or affiliates cannot be considered as high-quality liquid assets.
• BRSA also published the Regulation Amending Regulation on the Calculation and Assessment of Banks’ Capital Adequacy. The relevant amendment introduced changes related to the calculation of the adjustment amount to be determined for the calculation of credit risk.
• The Communiqué Amending the Communiqué on Disclosures Regarding Banks’ Risk Management to Public is published and amended the article regarding the counterparty credit risk.
• Finally, the Communiqué Amending the Communiqué on Credit Risk Mitigation Techniques is published and amended provisions regulating internal models, “Standard Volatility Adjustments Approach” and the “Own Estimates Volatility Adjustments” approach.

The abovementioned Communiqués will be entered into force on 01.07.2022.

• You may find the full text of the Regulation Amending the Regulation on the Calculation of the Liquidity Coverage Ratio of Banks here (Turkish).
• You may find the full text of the Regulation Amending Regulation on the Calculation and Assessment of Banks’ Capital Adequacy here (Turkish).
• You may find the full text of the Communiqué Amending the Communiqué on Disclosures Regarding Banks’ Risk Management to Public here (Turkish).
• You may find the full text of the Communiqué Amending the Communiqué on Credit Risk Mitigation Techniques here (Turkish).