Changes to Maximum Interest Rates of Credit Cards

Changes to Maximum Interest Rates of Credit Cards Changes were made to the maximum interest rates of credit cards. The change will take effect from 1 November 2020. Central Bank of the Republic of Turkey (CBRT), announced that they are determined by a rule based method and made a change reflecting the current market conditions to the maximum interest rate applied to credit card transactions. The following statements were included in the bank's statement: “As of 1 November 2020, the monthly maximum contractual interest rate applicable to credit card transactions in Turkish lira is 1.46 percent, the monthly maximum default interest rate is 1.76 percent, and the monthly maximum contractual interest rate applicable to foreign currency credit card transactions is percent. 1.17, the maximum monthly delay interest rate was calculated as 1.47 percent.” In the statement of the CBRT, in determining the maximum interest rates to be applied in credit card transactions, as an indicator of the funding cost, the reference rate calculated in accordance with the Communiqué on the Procedures and Principles Regarding the Fees that can be collected from Commercial Customers by Banks (Number: 2020/4), taking into account the weighted average deposit interest rates of banks. Stating, "The maximum monthly contractual interest rate to be applied in Turkish lira will be determined by adding 55 basis points to the reference rate." In the statement of the bank, effective from 1 November 2020, the monthly maximum contractual interest rate to be applied to credit card transactions in Turkish lira is 1.46 percent, the monthly maximum delay interest rate is 1.76 percent, and the monthly maximum contractual interest rate to be applied to credit card transactions in foreign currency. It was informed that the monthly maximum delay interest rate was calculated as 1.17 percent and 1.47 percent. It was announced that the rates calculated according to the aforementioned method will be announced on the official website of the CBRT on the fifth business day of every month, in the Statistics / Banking Data / Maximum Interest Rates for Credit Card Transactions section, and that the rates will be effective from the first day of the following month.