2.3 Regulations and Other Actions Regarding the Financial System

2.3.1 Maximum Interest Rates for Credit Cards

Since November 2020, the maximum interest rates for credit cards have been determined by a predictable, rule-based method reflecting current market conditions. Accordingly, the maximum interest rates for credit cards are based on the reference rate calculated according to the Communiqué on Procedures and Principles Regarding the Fees That Banks Can Charge Commercial Clients (No. 2020/4).

The CBRT decided to change the basis point added to the monthly reference rate for the monthly maximum contractual interest rate applied to cash advances or purchases via credit cards from 131 basis points to 189 basis points. The interest rates calculated according to this amendment were to be announced and applied as of March 16, 2024. Additionally, the CBRT decided to set the monthly maximum contractual interest rate applied to TRY credit card transactions (excluding cash advances or purchases) by adding 114 basis points to the monthly reference rate instead of 55 basis points. The interest rates calculated as part of this amendment were to be announced and applied as of April 6, 2024.

With the amendment introduced on September 27, 2024, to limit the borrowing behavior and contribute to the moderation in domestic demand, the maximum contractual interest rates for personal credit cards (PCCs) were differentiated based on the amount of term debt as of November 1, 2024. Additionally, maximum interest rates to be applied to corporate credit card transactions were increased. Accordingly, monthly maximum contractual interest rates to be applied to credit card transactions in TRY (excluding cash withdrawal or usage transactions) will be set as follows:

• By adding 39 basis points to the reference rate for PCCs with term debt less than TRY 25,000,
• By adding 114 basis points to the reference rate for PCCs with term debt between TRY 25,000 and TRY 150,000,
• By adding 164 basis points to the reference rate for PCCs with term debt exceeding TRY 150,000 as well as for corporate credit cards irrespective of their term debt amount. Moreover, the maximum interest rate applicable to the restructuring of PCCs was limited to the reference rate.

Accordingly, the maximum contractual and overdue interest rates applied to credit card transactions for the January-October 2024 period are shown in Table 2.3.1.1 and those for the November-December 2024 period are shown in Table 2.3.1.2.

Table 2.3.1.1. Maximum Interest Rates on Credit Card Transactions for January-October 2024 Period(%)

Table 2.3.1.2. Maximum Interest Rates on Credit Card Transactions During the November – December 2024 Period (%)

2.3.2 Regulations on Fees

2.3.2.1 Regulations Regarding Fees Chargeable to Commercial Clients

“The Communiqué No. 2020/4 on Procedures and Principles Regarding the Fees that Banks Can Charge Commercial Clients“ determines the fees that banks can charge their commercial clients for products and services they offer. The purpose of the Communiqué is to enhance predictability and transparency in transactions between banks and their commercial clients, to ensure consistency of concepts and terminology, and to prevent excessive pricing.

The communique published in the Official Gazette of June 28, 2024 introduced some changes in the Communiqué No. 2020/4. In this context, the calculation method for the maximum prepayment fee for commercial loans extended as of July 1, 2024 was changed. Accordingly, a formula was devised that takes into account the credit interest rate and the remaining weighted average maturity for fixed-rate Turkish lira loans, and a fixed rate and the remaining weighted average maturity for fixed-rate foreign currency loans. The details of this formula were included in the Implementation Instruction on Procedures and Principles Regarding the Fees that Banks Can Charge Commercial Clients. As for variable-rate loans, the maximum prepayment fee was set at 2%.

Additionally, in 2024, the CBRT responded to approximately 330 applications regarding the fees chargeable to commercial clients under the Communiqué No. 2020/4.

2.3.2.2 Fees Chargeable to Financial Consumers

The Communiqué No.2020/7 on Procedures and Principles Regarding the Fees to be Charged to Financial Consumers published in the Official Gazette No. 31061 of March 7, 2020 regulates the fees chargeable to financial consumers for products and services offered. The purpose of the Communiqué is to determine the procedures and principles governing any kind of fees, commissions and expenses (other than interest and profit share) chargeable to financial consumers for the products and services offered by institutions.

In 2024, the CBRT responded to approximately 6,000 applications received through various channels regarding the fees chargeable to financial consumers under the Communiqué No. 2020/7.