The Regulation on Prevention Plans to be Prepared by Systemically Important Banks is published

The Regulation on Prevention Plans to be Prepared by Systemically Important Banks (“Regulation”) entered into force through its publication in the Official Gazette dated 16.03.2021 and numbered 31425. Pursuant to the Regulation, the procedures and principles regarding the preparation and application of prevention plans by the banks that are determined as systemically important are set.

Significant amendments introduced by the Regulation are summarized below:

• The obligations of preparing a prevention plan with an aim to determine precautions that will be taken if a systemically important bank experiences financial disruptions or if there is such possibility, and notifying such plan to the Banking Regulatory and Supervisory Authority (“BRSA”) are introduced. The details of the prevention plan are determined by the Regulation.
• The obligation to determine precautions in line with the “prevention plan scenarios” of the prevention plan is introduced.
• The obligation to determine “prevention plan indicators” is introduced. Accordingly; a systemically important bank is obliged to set certain indicators and thresholds to determine the stage when the prevention plan will be implemented. The details regarding such indicators are determined by the Regulation.

Pursuant to the Regulation, the prevention plans to be prepared as of the end of 2020 shall be sent to the BRSA until the end of June 2021.

You may find the Turkish version of the Regulation here.