The Regulation on Measurement and Evaluation of Capital Adequacy
of Banks was published in Official Gazette number 29511 on 23
October 2015 ("Regulation"). The
Regulation was prepared by the Banking Regulation and Supervision
Agency and enters into effect on 31 March 2016. The Regulation
outlines principles and procedures to ensure banks hold sufficient
equity to balance the damage related to probable risks. It
represents a more compatible regulatory structure with the Basel
standards than previously existed in Turkey.
The Basel Committee on Banking Supervision ("Basel
Committee") frames general bank supervision and
regulation worldwide. The Communiqué introduces amendments
to align Turkish regulation with the standardized approach
introduced in 2012 by the Basel Committee's Regulatory
Consistency Assessment Programme, particularly the Third Basel
Accord (Basel III). Basel III was issued to prevent insufficiency
of liquidity caused by risky loans. Member states are expected to
harmonize domestic law with Basel III provisions by 31 March
The Regulation was prepared based on Articles 43, 45, 47 and 93
of Banking Law numbered 5411. These articles regulate maintenance
of equity, capital adequacy, as well as excess limits and rates
related to equity.
Significant matters stipulated by the Regulation include:
Determining amounts based on credit
Determining amounts based on market
Determining amounts based on
Ratios for capital adequacy.
The Regulation on the Measurement and Evaluation of Capital
Adequacy of Banks (Official Gazette number 28337, 28 June 2012)
will be repealed when the new Regulation enters into force on 31
March 2016. Please see this link for full text of the new Regulation (only
available in Turkish).
Information first published in the MA | Gazette, a fortnightly legal update
newsletter produced by Moroğlu Arseven.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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