Recent Development
The Banking Regulation and Supervision Agency (the “BRSA“) published Decision No. 11571, dated 17 September 2026 (the “Decision“), granting publicly traded banks temporary relief in respect of the capital adequacy treatment of share buy-backs effected on Borsa İstanbul.
What’s New?
Under the Decision, the treasury shares acquired, after 16 September 2026 and until 31 December 2026, by publicly traded Turkish banks whose shares are traded on the Equity Market of Borsa İstanbul, through buy-backs effected on that market, will not be taken into account as a deduction item from Common Equity Tier 1 (“CET1“) capital under Article 9(4)(a1) of the Regulation on the Equity of Banks; and not be included in the calculation of the amount subject to credit risk and the amount subject to market risk under the Regulation on the Measurement and Evaluation of the Capital Adequacy of Banks.
Conclusion
The Decision grants publicly traded banks temporary regulatory capital relief for share buy-backs carried out on the Equity Market of Borsa İstanbul, by ensuring that the treasury shares so acquired will neither be deducted from CET1 capital nor increase the amounts subject to credit risk and market risk for capital adequacy purposes. This step is expected to facilitate publicly traded banks’ use of buy-back programs during this period without adversely affecting their capital adequacy ratios.
