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Legal Alerts

Sale of NPLs of State-Owned Banks

Legal Alerts
Banking & Finance

Recent Development

The Turkish Banking Regulatory and Supervisory Authority (the “BRSA”) issued a new regulation with regard to sale of non-performing loans (donuk alacaklar) of state-owned banks and their financial subsidiaries (the “Sellers”) to asset management companies (the “Regulation”).

The Regulation was published in Official Gazette No. 30151 on August 11, 2017 and entered into force on the same date.

Scope of the Regulation

  • Pursuant to the Regulation, the Sellers are required to determine the quality of non-performing loans through a cost and benefit analysis focusing on efficiency, market conditions, collection potential, collateral status, debtors‘ financial standing.
  • The Sellers are also required to comply with the BRSA regulations relating to internal systems. The Sellers’ policies for sale of non-performing loans must cover sale methods, terms and conditions of the non-performing loans to be sold and tender processes to be conducted.


With this Regulation, the BRSA aims to facilitate to sale of the Sellers’ non-performing loans.