COVID-19 measures in the Turkish financial sector: Deadline extension for reporting requirements

With its decision dated April 2, 2020, the Banking Regulatory and Supervision Agency (the “BRSA”) extended the deadlines applicable to certain reporting or notification requirements by 60 days.

Extended deadlines will apply to the annual and interim (March 31) financial statements, independent audit reports and activity reports to be filed by banks, auditing firms, credit rating institutions, asset management firms, financial leasing, factoring and finance companies.

Notification requirements imposed on banks under the secondary legislation, including those relating to credit transactions, internal systems management and capital adequacy will also be extended until December 31, 2020.

The BRSA, under the applicable legislation, normally requires banks to collect certain documents from borrowers before extending a loan. With the current announcement, the BRSA now gives banks six months after extension of a loan to complete any missing documentation/information. If an existing customer has failed to provide a required document or information, these may be completed until the end of 2020.