Turkey: Banks Act

This document outlines the details of the Bank Act of Turkey. It states that the:

• Purpose of the Act is to lay down the principles of management, operations, acquisition, merger, liquidation and supervision of banks;
• Aim of the Act is to protect the rights and interests of depositors by ensuring an efficient functioning of the credit system by giving due consideration to confidence and stability factors in the financial markets.

The Act, in particular, outlines the details about the:

• Role of Banking Regulation and Supervision Agency (BRSA) along with the employment and financial rights of the employees working in the agency;
• Conditions under which banks can be established and operated, and the existing provisions related to deposits and general exposure limits;
• Amount of loans that can be extended to affiliates, subsidiaries, shareholders and employees;
• Prohibitions related to commodity trading and real estate transactions;
• Accounting and recording system that the banks are to follow;
• Process to follow while undergoing acquisitions, mergers and liquidation of Banks;
• The kind of punishments and sanctions that are likely to be invoked in case of administrative and judicial offences both against employees of the bank and its clients;
• Procedures to follow in case of legal proceedings and the role BSRA has in the overall prosecution of offences.