What's New?
The Banking Regulatory and Supervisory Authority
(”BRSA”) amended the asset ratio
(“AR“) set out for deposit and
participation banks with its decision dated September 28, 2020 and
No. 9170 (“Decision“).
Recent Development
The BRSA revised the monthly average AR for a relevant month to
90% for deposit banks and 70% for participation banks, a decrease
from 95% and 75%, respectively. Banks will calculate their monthly
average AR as follows:
Asset Ratio (AR) = [Loans + (Securities x 0.75) + (Central Bank
Swaps x 0.5)] / [TRY Deposit + (FX Deposit x 1.75)]
Deposit banks and participation banks that fail to meet the AR
of 90% and 75% will be subject to an administrative fine ranging
between TRY 500,000 and up to 5% of the shortfall (i.e. the AR set
by the BRSA minus the achieved AR in the relevant month), pursuant
to Article 148/1(a) of the Banking Law No. 5411.
