New Banking Regulation On "Systemically Important Banks" In Turkey

A new banking regulation, "Systemically Important Banks" (the Regulation), has come into force upon its publication in the Turkish Trade Registry Gazette. The purpose of the Regulation is to determine (i) the "systemically important banks" whose operations are vital for the Turkish financial system, (ii) the amount of additional capital buffer these banks will be required to reserve, (iii) how these banks should behave if they are unable to reserve the required additional capital and (iv) other related obligations.

The concept of "systemically important banks" became the focus of bank reform following the events of 2008, when the failure of several big banks led to a worldwide economic crisis. Consequently, the Basel Committee on Banking Supervision established criteria for identifying such banks and their obligation to reserve additional capital. The criteria included a bank's size, its level of integration into the financial system, its complexity and the