What is the Objective of This Law?
Article 1-The objective of this law is to regulate the principles and procedures of ensuring confidence and stability in financial markets, the efficient functioning of the credit system and the protection of the rights and interests of depositors.
What is the Scope of This Law?
Article 2- The deposit banks, participation banks, development and investment banks, the branches in Turkey of such institutions established abroad, financial holding companies, Banks Association of Turkey, Participation Banks Association of Turkey, Banking Regulation and Supervision Agency, Savings Deposit Insurance Fund and their activities shall be subject to provisions of this law.
What is the Field of Activity?
Article 4- Without prejudice to the provisions of other laws, banks may carry out the following activities:
a) Accepting deposits,
b) Accepting participation funds,
c) Granting any sort of loan, either cash or non-cash,
d) Carrying out any type of payment and collection transactions, including cash and deposit payment and fund transfer transactions, correspondent bank transactions, or use of check accounts,
e) Purchasing transactions of commercial bills,
f) Safe-keeping services,
g) Issuing payment instruments such as credit cards, bank cards and travel checks, and executing relevant activities,
h) Carrying out foreign exchange transactions, trading of money market instruments, trading of precious metals and stones and safekeeping such,
i) Trading and intermediation of forward, future and option contracts, simple or complex financial instruments which involve multiple derivative instruments, based on economic and financial indicators, capital market instruments, goods, precious metals and foreign exchange,
j) Purchase and sale of capital market instruments and repurchasing or re-sale commitments,
k) Intermediation for issuance or public offering of capital market instruments,
l) Transactions for trading previously issued capital market instruments for intermediation purposes,
m) Guarantee transactions like undertaking guarantees and other liabilities in favor of other persons,
n) Investment counseling services,
o) Portfolio operation and management,
p) Primary market dealing for purchase-sales transactions within the framework of liabilities assumed by contracts signed with Treasury Undersecretariat and/or Central Bank and associations of institutions,
r) Factoring and forfeiting transactions,
s) Intermediating fund purchase-sale transactions in the interbank market,
t) Financial leasing services,
u) Insurance agency and individual private pension fund services,
v) Other activities to be determined by the Board. Deposit banks shall not be engaged in activities cited in sub- paragraphs (b) and (t); participation banks shall not be engaged in activities cited in sub-paragraph (a) and development and in- vestment banks shall not be engaged in activities cited in sub- paragraphs (a) and (b).
Article 48- The cash loans and non-cash loans such as letters of guarantee, counter-guarantees, suretyships, avals, endorsements, acceptance loans and commitments bearing such characteristics, bonds and similar capital market instruments that have been purchased, funds lent through making a deposit or other ways, receivables arising from the installment sales of assets; overdue cash loans, accrued but non-collected interests, values of non-cash loans that have been converted to cash, receivables incurred from re- verse repurchasing transactions, risks undertaken within the scope of futures and option contracts and other similar contracts, partner- ship shares and transactions recognized as loan by the Agency shall be considered as loans in the implementation of this Law, irrespective of the accounts they are booked.
For the implementation of this Law, in addition to those mentioned in the first paragraph, loans shall also include the finance provided through the financial leasing method by development and investment banks the payment of all movable and immovable property and services fees of participation banks or the profit and loss sharing investments, immovable, equipment or property procurement or financial leasing or joint investments by financing documents in return for property, and similar methods.
What are the Customer Rights?
Article 76- Banks shall set up under their own bodies a sys- tem that will respond to the problems and complaints of their customers stemming from the services provided thereto and shall inform their customers of this service. Banks shall provide an approved copy of loan contracts to their customers and shall provide the customers with a copy of all documents pertaining to the transactions carried out with their customers upon the re- quest of customers.
The minimum requirements pertaining to the format and con- tents of the contracts to be signed between banks and their customers pertaining to the activities mentioned in Article 4 of this Law as well as the transactions for which uniform contracts will be applicable shall be established by the associations of institutions upon obtaining the approval of the Board. The provisions of the Law No. 4077 shall be reserved.
Banks shall not open deposit, participation fund, credit or other accounts, sign contracts, provide remittance and foreign exchange services and other banking and financial services for clients that do not document their identities and tax numbers. The principles and procedures applicable to the implementation of this paragraph shall be governed by the Ministry of Finance upon consulting the Agency. The enforcement of the provisions of Article 5 of the Law No. 4358 and dated 2/4/1998 for those persons who violate the provisions of this paragraph and the regulations of the Ministry of Finance shall not be subject to the provisions of this Law pertaining to prosecution procedures.For The Whole Of The Law, Please See The Attachment
Date: 13 March 2017
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