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Frozen loan regulation from the BRSA

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The threshold for the voluntary inclusion of banks in the non-performing loans category due to default on a loan was increased from 100 TL to 2 thousand 500 TL.

Changes were made in the regulation of the Banking Regulation and Supervision Agency (BDDK), published in today’s issue of the Official Gazette, which determines the originals of the classification of loans and provisions to be set aside for them.


debt, it will be at the discretion of the bank to classify the total amount of receivables of TL 2,500 or less from a debtor as non-performing loans. This threshold was previously applied as 100 TL. In terms of consumer loans, this threshold amount will be applied as 500 TL.

However, this price must not exceed 1 percent of the total on-balance sheet debts of the debtor customer to the bank and its subsidiaries, which are consolidated financial institutions, excluding participation shares.

The amounts in question will be increased every year in January by the rate of increase in the annual producer price index announced by the Turkish Statistical Institute.


With the regulation made in 2017, it was possible to classify consumer loans as non-performing loans. The non-performing loan, the 3-month delay in the repayment of the loan given by the banks, causes this loan to be classified as non-performing. In summary, the term ‘frozen’ is used for receivables that are unlikely to be paid or receivables that cannot be paid by the bank.

When it comes to the third of the steps in which the payment is followed, the credit is considered as non-performing. After this stage, the bank must allocate an amount equal to 20 percent of the loan in question. He has to allocate 50 percent in the next step, and 100 percent in the fifth and last step. In this way, the bank takes precautions against the bankrupt loan.

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