Recent Development
The Banking Regulatory and Supervisory Authority (“BRSA“) has taken a new measure regarding the COVID-19 outbreak in its decision dated April 16, 2020 and no. 8999.
Measure
Regarding bank’s standard approach to the calculation of the principal amount subject to credit risk, the 0% risk weight may be applied to foreign currency denominated receivables held by the Centralized Administration of Republic of Turkey, like for Turkish lira denominated receivables.
Conclusion
The BRSA aims to soften the expected disruptions of the COVID-19 pandemic on banking activities by providing flexibility in credit provisions.
Please stay up to date with further developments through the Esin Attorney Partnership Coronavirus Helpdesk.
