The Turkish Banking Regulation and Supervision Agency (the “BRSA”) has recently amended the “Regulation on Banks’ Transactions Subject to Approval and Indirect Bank Shareholding” (the “Regulation“) effective as of June 9, 2017.
Overview of the Amendments
- The amendments change the security measures for banks opening domestic branches. Turkish banks must consider the following items when implementing security measures for their new branches:
- the size, transaction volume, physical conditions and region of the branch to be opened;
- provincial security commission’s decisions; and
- other necessary measures.
- The banks’ decisions regarding their security measures should be in writing and justified.
- Previously, the Regulation did not provide detailed security measures, and Turkish banks were only required to take the security measures set forth by the provincial security commissions.