Turkiye: Credit warning from BRSA to banks

Banks received a credit warning with a new statement from the Banking Regulation and Supervision Agency (BRSA), which imposes a foreign currency asset limit on companies in TL loan use.

The Banking Regulation and Supervision Agency (BRSA) imposed a limit on companies’ foreign currency assets in TL loan use.

Regarding this decision taken from the BRSA, a new warning came to the banks.

The following statements were included in the statement:

“With regard to the implementation of our decision dated 24.06.2022 and numbered 10250, our institution has received some complaints that some banks request independent audit reports from all their commercial customers, regardless of whether they are subject to independent audit or not.

As stated in the statement made by our institution on June 26, 2022, banks are required to obtain information and documents approved by independent auditing, and up-to-date financial statements that have been independently audited, only from loan customers who meet the 3 conditions stated in this statement at the same time.

For customers not included in our aforementioned statement, it is important that the economic activity continues in its usual course and that additional information/documents are not requested from customers for loan allocation, even though it is not required in accordance with our aforementioned decision.

Moreover, as stated in our statement dated June 26, it has been stated that even credit customers who do not have an independent audit report can make loans available, provided that they bring the information, documents and financial statements that have been independently audited after 1 month.

On the other hand, it has been observed that there are misunderstandings that the maturity of the loans that can be extended to customers who document their FX net position gap in the 3 months following the loan application date, is limited to only 3 months, even though they have met the loan limitation conditions within the scope of the aforementioned decision. .

In this context, it was useful to state that it is possible to extend the said loans with a maturity of more than 3 months, provided that the amount of the short position is limited to the 3-month period.”

Source: NTV / Translated by Irem Yildiz

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