The BRSA Eases Reporting Requirements of Financial Institutions

The Banking Regulatory and Supervisory Authority (”BRSA”) has introduced new facilitating measures in regards to financial institutions’ compliance with their reporting requirements through its decision No. 8976 dated 2nd April 2020.

The BRSA has announced that due to measures taken against the spread of the COVID-19 pandemic, the number of staff is conducting operational processes has been limited. In light of such limitations the BRSA has introduced the following measures:

1. The deadlines stipulated under the following regulations regarding the year-end (December 12, 2019) and interim (March 31, 2020) financial reports; independent audit reports; activity reports; and notifications which banks, independent audit institutions, rating agencies, asset management companies, leasing, factoring and financing companies must submit to the BRSA and other relevant authorities, in accordance with the listed regulations has been extended for 60 days until 31st December 2020.

• Regulation on the Credit Transactions of Banks
• Regulation on the Procedures and Principles for Accounting Practices and Document Retention of Banks
• Regulation on the Principles and Procedures concerning Preparation and Publishing of Annual Report of Banks
• Regulation on Internal Systems and  Internal Capital Adequacy Assessment Process of Banks
• Regulation on the Independent Audit of Banks
• Regulation on the Procedures and Principles regarding Executive Appointment Notifications, Oaths and Declaration of Property, and Keeping of the Minute Books of Banks
• Regulation on the Authorization and Operations of Rating Agencies
• Regulation on the Principles for Establishment and Operations of Asset Management Companies
• Regulation on the Principles for Establishment and Operations of Financial Leasing, Factoring and Financing Companies

2. Banks will be able to submit their Stress Test Reports and ICAAP Reports for December 31, 2019 electronically, through their registered e-mail addresses.

3. In addition to these, for documents required from new borrowers as per Article 11/A. sub clause 1 of the “Regulation on the Credit Transactions of Banks” (such as financial statements, compliance reports on corporate governance principles), which can not be procured; A six month period has been allowed to such borrowers to provide the outstanding documents following the loan allocation date and in turn banks shall need to keep records of such documents. This period shall be applied as “the end of 2020” regarding outstanding documents and information of existing borrowers required as per Article 11/A. sub clause 2 of the aforementioned Regulation.