The Banking Regulatory and Supervisory Authority (the “BRSA“) previously issued certain flexibilities on credit defaults in its decision dated March 17, 2020. We summarized these measures in our legal alert dated March 18, 2020.
The BRSA has now taken additional measures regarding the COVID-19 outbreak with its decisions dated March 19, 2020 and no. 8949 and 8950. Furthermore, the Turkish Banks’ Association (the “TBA“) issued certain advisory decisions on Turkish banks’ activities.
TBA’s Advisory Decisions
Pursuant to the TBA’s advice, Turkish banks, at their own discretion, will be able to:
In addition to the above, the TBA has advised Turkish banks to (i) continue providing digital banking services without any disruption; and (ii) set the working and customer visit hours as 12:00-17:00 for the branches and service units that provide direct services to customers.
While the BRSA aims to soften the expected disruptions in economic and commercial activities that COVID-19 might cause by updating financing conditions and credit defaults, the TBA champions a less physically interactive banking environment to suppress the spread of COVID-19.
Please refer to our coronavirus desk at https://www.esin.av.tr/coronavirus-desk/ for our client alerts regarding the legal consequences of COVID-19 on the finance sector and other areas.