Move aims at ensuring stability of financial system under macroprudential measures
Turkey’s banking watchdog announced on Thursday that as part of macroprudential measures, it had increased the risk weights for personal credit cards and consumer loans.
The weight of risk in credit card expenses and cash withdrawals was increased from 75 to 100 for maturities of one to six months, and from 75 to 150 for maturities over six months, according to the Banking Regulation and Supervision Agency (BDDK).
For consumer loans, the rate was updated from 75 to 100 for maturities of one to 12 months, and from 75 to 150 for maturities over one year, the BDDK said.
The move came to ensure the stability of the financial system under macroprudential measures.
Additionally, the BDDK reduced credit card installment periods to three months for purchases of jewelry,furniture, and electrical goods and 12 months for vehicle purchases by the final bill values.