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10 February 2020

Turkey lowers banking fees to urge banks to boost credit

Türkiye Cumhuriyet Merkez Bankası said that the regulations have been made in response to client complaints such as overcharging and a lack of transparency

Fees and commissions account for about 12 per cent of total bank revenue/Bloomberg

by Bloomberg

Turkey has lowered the fees banks earn on their customers’ transactions as policymakers urge lenders to focus on expanding credit.

The changes, published in the Official Gazette, dramatically cut down the number and types of commissions banks can charge retail and commercial clients.

The new regulations underscore the government’s criticism of private banks for focusing on profit instead of boosting credit at the same pace as state lenders. The decision to lower banking charges came after Turkey’s anti-trust authorities started a preliminary probe into more than 20 lenders to determine whether they violated competition law in offering deposit, credit, foreign-exchange and brokerage services to clients.

Fees and commissions account for about 12 per cent of total bank revenue, according to data compiled by the banking watchdog. Income from the charges rose 33 per cent in the year through December 2019.


RELATED STORIES: Türkiye Cumhuriyet Merkez Bankası





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