BRSA opened to opinion: Convenience for high-risk public institutions


Huseyin GOKCE – ANKARA

The Banking Regulation and Supervision Agency (BRSA) opened the draft for an amendment to the Regulation on Banks’ Credit Transactions. With the draft regulation, high-risk public institutions and SEEs are removed from among the companies to be asked for current financial statements that have been independently audited prior to loan allocation.

Convenience for high-risk public institutions

With the amendment foreseen in Article 11-A of the Regulation, high-risk public institutions are removed from among the institutions to be asked for financial reports before loan allocation.

In the current state of the regulation, credit customers (excluding banks and financial institutions) with a total risk of TL 100 million and above, including the loan requested, during the loan allocation phase; It is envisaged that current financial statements that have been independently audited will be requested.

In the new regulation, the limit of TL 100 million was removed in the request for financial statements, and instead, the criterion of “elevation of risk according to current information in TBB Risk Center” is introduced.

However, in the old version of the regulation, financial statements were not only requested from banks and financial institutions. In its new version, public administrations within the scope of central government and their affiliated organizations, State Economic Enterprises and their institutions, subsidiaries and affiliates and local administrations are excluded from among the organizations that require a report.

Non-cash loans of SEEs are out of the scope of limitation

With the amendment made to the 16th article of the Regulation, the scope of the institutions that are not subject to the restrictions in article 54 of the Banking Law is expanded. Accordingly, non-cash loans extended to state-owned enterprises for the provision of cash loans with Treasury repayment guarantee will not be subject to the credit limitation in the law. Article 54 of the Banking Law limits the total amount of loans that banks can extend to a real or legal person or a risk group to 25 percent of the equity.

Change in risk group definition

Article 4 of the Regulation, titled Real and legal persons to be included in the same risk group, envisages an amendment. The article regulates the issues that banks should pay attention to before the loan, when determining the risk group of the loan recipients.

In the current state of the first paragraph of the article, when determining the risk group in which individuals will be included, it was evaluated in terms of “those who work as general manager, board member or chairman of the board of directors in more than one partnership”.

In the new regulation, the restriction on the number of partnerships and companies served is removed. However, instead, it is stipulated that his wife and children will also be taken into account in determining the risk group.

Current article:

“In the determination by banks of real and legal persons to be included in the same risk group in terms of those who serve as general manager, board member or chairman of the board of directors in more than one partnership”

New state of matter

“(1) In the application of the first paragraph of Article 49 of the Law, a member of the board of directors of the bank in determining whether a real person and his spouse and children are included in the risk group of the relevant real person and in the application of the second paragraph of Article 49 of the Law, In determining whether the partnerships in which the general manager, deputy general manager, or even if they are employed with other titles, those who work in positions equal or higher to them in terms of their powers and duties and their spouses and children serve as the general manager or board member will be included in the bank’s risk group.


Source: Dünya Gazetesi by www.dunya.com.

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