BRSA Amended The Regulation On Interest Rate

BRSA amended the regulation on interest rate. The regulation on the measurement of interest rate risk has changed.

The Regulation Amending the Regulation on Measurement and Evaluation of Interest Rate Risk Arising from Banking Accounts by Standard Shock Method by the Banking Regulation and Supervision Agency (BRSA) was published in the Official Gazette. According to the amendment made by the BRSA in the aforementioned regulation, the clause defining the "participation account" was added to the first paragraph of the article 3, which includes the definitions section of the regulation. The first paragraph of Article 4 of the same regulation has been changed as follows: “(1) Standard ratio of interest rate risk arising from banking accounts, the discount rates obtained as a result of positive and negative standard shock application of the net position amounts obtained after placing the positions in interest sensitive banking accounts on the cash flows in the notification schedule in Annex-1 is the ratio that creates the highest loss for the bank from the ratios calculated by dividing the sum of the differences from the amounts obtained as a result of discounting the net position amounts by taking into account the non-shock discount rates, on terms and currencies basis, by the equity. In the calculation of the standard ratio of interest rate risk arising from banking accounts, among the positions in the banking accounts, those originating from the participation account are taken into account at the rate which will be determined by the Board.” As a result of the amendment made to the aforementioned paragraph, "In the calculation of the standard ratio of interest rate risk arising from banking accounts, those from the positions in the banking accounts that originate from the participation account are taken into account at the rate determined by the Board.” statements were added. The provisions of the regulation, which have entered into force as of today, are executed by the Chairman of the Banking Regulation and Supervision Agency.