Font Size
Share this article


Print Friendly Version
10 February 2020
REGULATION

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

MOST READ


RECOMMENDED NEWS



BRANDS MAGAZINES LATEST EDITION

OUR BRANDS



CPI Financial was established in Dubai in 1999 to meet the needs of an ever-expanding financial community, offering a comprehensive portfolio of market-leading products and services tailor-made for the banking and financial services sectors.


Subscribe to our News Letter

Subscribe

© 2019 CPI Financial. All rights reserved.

No part of this website may be reproduced or used in any form of advertising without prior permission in writing from the editor.