With its decision dated June 23, 2022 and numbered 10248 ("Decision"), the Banking Regulatory and Supervisory Authority ("BRSA") introduced regulations for residents in Turkey (except the banks and financial institutions) that carry out derivative transactions with non-residents.
In accordance with the Decision, it is decided to apply a risk weighting of 500%, regardless of the method used to calculate the amount subject to credit risk, the credit risk mitigation techniques, credit ratings and real estate mortgages, for the calculation of the capital adequacy ratio for Turkish lira and foreign currency commercial cash loans to be made available after June 23, 2022 to residents in Turkey, other than the banks and financial institutions, in case those residents carry out derivative transactions with non-residents after June 23, 2022.
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