Turkey’s banking regulator announced on Thursday that, as part of macroprudential measures, it has increased the risk weights for personal credit cards and consumer loans.
According to the Banking Regulation and Supervision Agency (BDDK), the risk weight on credit card and cash withdrawals has been increased from 75 to 100 for maturities of one to six months and from 75 to 150 for maturities greater than six months.
For consumer loans, the rate has been updated from 75 to 100 for maturities ranging from one to 12 months, and from 75 to 150 for maturities over one year, according to BDDC.
This step is aimed at ensuring the stability of the financial system with macroprudential measures.
In addition, the BDDK has shortened credit card installment periods to three months for jewelry, furniture and electrical goods purchases, and to 12 months for car purchases at final invoice value.