According to temporary data reported by banks to our Agency, as of February 2020 total assets of Turkish Banking Sector realized as TRY 4.712.688 million. Total assets of the banking sector increased by TRY 221.870 million (4.9%) compared to 2019 year-end. As of February 2020, loans, the largest item in assets amounted to TRY 2.772.411 million and securities amounted to TRY 711.310 million. Compared to the end of 2019, total assets increased by 4.9%, total loans increased by 4.4% and the securities portfolio increased by 7.6%. The share of nonperforming loans in total loans realized as 5.20%.

Deposits, the biggest fund resource of the banks, increased by 4.7% compared to the previous year-end to TRY 2.687.886 million.

While the total shareholders’ equity increased by 3.9% to TRY 511.346 million compared to the end of 2019; in February 2020 period, the net profit of the period is 15.130 million TRY and the capital adequacy standard ratio is 17.71%.

Source: Banking Regulation and Supervision Agency – Link: https://www.bddk.org.tr/Data/Monthly-Bulletin/21
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

According to the news published by Central Bank of Republic of Turkey, fees that banks can charge their commercial clients for products and services, offered under four categories as “Commercial Loans”, “Foreign Trade”, “Cash Management” and “Payment Systems”, have been limited to 51 items.

Pursuant to the Council of Ministers Decision No. 2006/11188, the Central Bank of the Republic of Turkey issued the “Communiqué No. 2006/1 on the Deposit and Loan Rates, the Profit and Loss Participation Rates for Participation Accounts, and Other Non-Interest Benefits to be Received via Credit Transactions”. Article 4 of this Communiqué stipulates that the characteristics and limits of other non-interest benefits to be received and charges to be collected shall be determined freely. However, it was observed over time that banks collect numerous fees, commissions and charges of the same characteristic under different names, and the collected amounts are far from being comparable and might lead to overcharging. Consequently, client complaints have increased significantly.

Therefore, the Banking Regulation and Supervision Agency (BRSA) issued the “Regulation on Procedures and Principles Regarding the Fees to be Charged on Financial Consumers” on 3 October 2014, which simplified the fees that can be charged on financial consumers, and ensured transparency in charges. However, problems persisted regarding the charges imposed on commercial clients.

Following comprehensive evaluations, it has been decided to make a regulation to render the fees that can be collected more transparent, lucid and comparable by determining the types and characteristics, maximum amounts or rates of fees that banks can charge their commercial clients for products and services as well as the standards thereof. To this end, the “Communiqué No. 2020/4 on Procedures and Principles Regarding the Fees That Banks Can Charge Their Commercial Clients” has been published.

In this Communiqué,

• Fees that banks can charge their commercial clients for products and services, offered under the four categories as “Commercial Loans”, “Foreign Trade”, “Cash Management” and “Payment Systems”, have been limited to 51 items,
• Quantitative or qualitative restrictions have been introduced to some fee items,
• Obligation to inform has been imposed on banks for transparency purposes.

Provisions in the Communiqué shall be effective as of 1 March 2020. These provisions shall also apply to transactions to be conducted after the effective date under the contracts made before this date.

The amounts and rates limited in the Communiqué are upper limits, and the fees and rates to be applied will certainly be determined by competitive market conditions as well as by the business relations between banks and commercial clients.

Moreover, it has been decided to repeal the Communiqué No. 2006/1 on 1 March 2020 and to replace it with the “Communiqué No. 2020/3 on the Deposit and Loan Rates and the Profit and Loss Participation Rates for Participation Accounts”, to be effective 1 March 2020. With the Communiqué No. 2020/3, the provisions of the repealed Communiqué excluding those on other non-interest benefits to be received are broadly preserved, and provisions are changed regarding the profit and loss participation rates to be applied in participation accounts, taking into account the BRSA regulations and international interest-free finance principles and guidelines.

Source: Central Bank of Republic of Turkey / link: https://www.tcmb.gov.tr/wps/wcm/connect/EN/TCMB+EN/Main+Menu/Announcements/Press+Releases/2020/ANO2020-07
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

According to the news published by Central Bank of Republic of Turkey, regarding the table of Foreign Exchange Assets and Liabilities of Non-Financial Companies as of November 2019, assets increased by USD 1 million while liabilities decreased by USD 1,502 million, compared to October 2019. Accordingly, Net Foreign Exchange Deficit recorded USD 175,947 million indicating a decrease of USD 1,503 million compared to October 2019.

On the asset side; deposits held by domestic banks decreased by USD 1,212 million, direct investments abroad and export receivables increased by USD 216 million and USD 947 million respectively, indicating an increase of USD 1 million in assets. On the liability side; domestic loans decreased by USD 2,350, while external loans (excluding trade credits) and import payables increased by USD 7 million and USD 841 million respectively compared to October 2019. Accordingly, liabilities recorded a decrease of USD 1,502 million.

In November 2019, short-term domestic loans increased by USD 149 million, while long-term domestic loans decreased by USD 2,499 million compared to October 2019. Short-term external loans increased by USD 741 million, while long-term external loans increased by USD 107 million.

In November 2019, short-term assets recorded USD 103,993 million while short-term liabilities recorded USD 94,446 million. Accordingly, Short-Term Foreign Exchange Surplus recorded USD 9,547 million indicating a decrease of USD 1,105 million compared to October 2019. The share of the short-term liabilities in total liabilities is 32 percent.

Source: Central Bank of Republic of Turkey / link: https://www.tcmb.gov.tr/wps/wcm/connect/en/tcmb+en/main+menu/statistics/monetary+and+financial+statistics/fx+assets+and+liabilities+of+nonfin+companies
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

According to the news published by the Central Bank of Republic of Turkey, the broad money supply M3 grew annually by 28.2% in December 2019, following the 25.7-percent yearon-year growth in November 2019. The annual growth rate of M1, the narrowest measure of money supply, increased from 38.1% in November to 41.6% in December 2019.

The annual rate of increase in loans granted by the monetary sector to households is 15.6% in December 2019. Meanwhile, the loans extended to non-financial corporations increased 5.9% in November 2019 compared to previous year, while it increased year on year 8.7% in December 2019.

An analysis of the contribution of broad money components to the annual growth in money supply reveals that the largest contribution came from time deposits, followed by demand deposits. The increase in time deposits contributed 19% to the 28.2% annual growth in the broad money M3 in December 2019 while demand deposits added 6.4%. Other components had a limited contribution to the growth.

The growth in M3 is reflected in counterparts as an increase in claims on the private sector, the general government, non-bank financial institutions and net foreign assets by 28.9%, 5%, 0.9% and 2.1% respectively. On the other hand, other items (net) had a reducing effect by 8.7%.

Source: Central Bank of Republic of Turkey / link: https://www.tcmb.gov.tr/wps/wcm/connect/533c4d4d-be2b-4086-b0c1-74d33a22d848/Monetary+Developments.pdf?MOD=AJPERES&CACHEID=ROOTWORKSPACE-533c4d4d-be2b-4086-b0c1-74d33a22d848-m.XnmDT
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

It is not required to prepare an invoice for the loans between companies. About the payments; you should use 232 account for debts and 102 account for receivables. For the payments such as the interest, late interest, and exchange differences, the rules of transfer pricing and distribution of hidden profits must be followed.

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.