Turkey's BDDK Lowers Credit Limits for Development and Investment Banks

The Banking Regulation and Supervision Agency (BDDK) issued new rules that reduce the credit‑risk limits for Turkey's development and investment banks. Outside two exemptions – Istanbul Takas ve Saklama Bankası AŞ and İller Bankası AŞ – banks may now allocate credit to a single individual, legal entity or risk group up to 30% of their paid‑up capital, down from the previous 40‑60% range. For credit extended within a bank's own risk group, the ceiling is set at 25% of capital, reduced from the earlier 35‑55% range.

Banks are given a transition period to comply. Any excess on external exposures must be eliminated by 1 April 2027, while excesses within a bank’s risk group must be corrected by 1 October 2026.