There has been a critical development regarding the new regulation that closely concerns credit card users. According to the report shared by the Interbank Card Center (BKM) and the Risk Center of the Banks Association of Turkey (TBB), the rate of credit card users with a limit of 100 thousand liras and above has reached a historical peak, reaching 45.3 percent. This situation attracted the attention of financial markets and heralded a significant change in the sector.
NEW REGULATION FOR CREDIT CARDS
One of the clear reflections of the high inflation seen in recent years is seen in the credit card limits offered by banks to their customers, while the latest report showed that 45.3 out of every 100 credit cards have a limit of 100 thousand TL or more. In addition, while the limit risk share determined for this group was 14.5 percent in 2022, this figure increased to 85.5 percent in 2024.
The Banking Regulation and Supervision Agency (BDDK), which took action to prevent the problematic situation that arises in credit cards, made a remarkable change in card limits with the instructions it sent to banks.
ALL CREDIT CARD LIMITS ARE REDUCED TO THIS LEVEL
While it was learned that the restrictive steps for credit cards, which have been on the agenda for months, will be put into effect as of this week, journalist Fatih Altaylı made important warnings on the subject in the information he based on the banking sector.
Altaylı stated that BRSA sent a letter to all banks and warned them to make changes in credit card limits, and shared the details of who will have how many credit card limits in the new regulation.
CREDIT CARD LIMITS WILL FALL VERY HARD
Although there is currently a legislation on the subject by the BRSA, Turkey’s largest private and public banks can allocate limits in violation of this regulation. While Turkey has one of the unhealthy balances in the world in terms of monthly earnings and credit card limit ratio, many users are given credit card limits of 15-20 times their monthly income.
With the instruction sent, high-limit credit cards, especially those offered to low- and middle-income groups, will be examined. While it is learned that banks will carry out a comprehensive study on this issue starting tomorrow, heavy fines will be imposed by the BRSA on banks that do not regulate their credit card limits.
Following these restrictions, as a result of the instructions of the CBRT, it became clear what level of credit card limits banks will offer to users.
CREDIT CARD LIMITS WILL NOT EXCEED 8 TIMES YOUR MONTHLY INCOME
Regardless of payment performance and credit score, banks will allocate a limit of 4 to 8 times their monthly income to all their customers.
With the change, the ceiling limit for customers who have used their existing credit card for 1 year or less will be 4 times their monthly income. For users who have used their credit cards for more than 1 year and completed their payments on time, banks will have the authority to give a limit of 8 times their monthly income.
Credit cards that do not comply with this regulation under current conditions will be determined through examination and a change will be made in the credit card limits to comply with the new regulation.