Correct as of 11:00 AM, 16 April 2020. This article is not being maintained.
The Turkish Banking Regulation and Supervision Agency ("BRSA") has announced measures to make the reporting obligations of financial institutions more convenient (decision dated 2 April 2020 numbered 8976). The decision should enhance the flexibility of Turkey's financial institutions to meet notice periods dictated under the applicable legislation during the coronavirus (COVID-19) crisis.
As the number of employees to be assigned to the relevant operations is being limited due to the measures taken against COVID-19; the notice period for the submission of interim financial, independent audit and annual reports for the period 31 December 2019 to 31 March 2020 which banks, independent audit institutions, rating agencies, asset management companies, leasing, factoring and financing companies are obliged to send to the BRSA and other relevant authorities under the below-listed regulations, has been postponed for sixty (60) days. Additionally, the notice period for other miscellaneous notifications set forth by the below-listed regulations have also been extended for sixty (60) days (to be valid until 31 December 2020):
- Regulation on Credit Transactions of Banks;
- Regulation on Procedures for Accounting Practices and Document Retention of Banks;
- Regulation on the Principles and Procedures concerning Preparation and Publishing of Annual Reports of Banks;
- Regulation on Internal Systems and Internal Capital Adequacy Assessment Process of Banks;
- Regulation on the Independent Audit of Banks;
- Regulation on the Procedures and Principles regarding the Notification of Executives' Appointments, Oaths and Property Declarations, and Keeping Minute Books;
- Regulation on the Authorization and Operations of Rating Agencies;
- Regulation on the Principles for Establishment and Operations of Asset Management Companies; and
- Regulation on the Principles for the Establishment and Operation of Financial Leasing, Factoring and Financing Companies.
Additionally, banks will be eligible to electronically present their Stress Test Reports (partial and plenary (tümel) stress test application results), and ICAAP Reports as of 31 December 2019 through their registered e-mail addresses.
Further, to eliminate the problems that may arise vis-a-vis the credit allocations of banks, records regarding the incompleteness of documents to be obtained from loan customers should be kept, and incomplete information and documents should be submitted within six (6) months following the respective credit allocations. Additionally, the missing information and documents pertaining to the current loan customers should be completed by the end of 2020, in accordance with paragraph (2) of Article 11/A.
For more information about the decision, contact your regular CMS advisor or local CMS experts: Dr. Döne Yalçın or Alaz Eker Ündar.