"Risk Weighting Reduced for Certain Commercial Loans"

Forex - The Banking Regulation and Supervision Agency (BRSA) has reduced the risk weight for some commercial loans from 200% to a range of 20%-100%.

With this decision, risk weights of 20%, 50%, or 100% will be applied to commercial loans, including existing loans, based on credit ratings. This percentage will be determined according to the companies’ credit scores. For those without a credit score or with a low score, the rate will be set at 100%, while for those with a good score, it will be set at 20%.

Since May 2022, a risk weight of 200% was applied in a more cautious manner for the capital adequacy calculation of commercial cash loans, excluding agricultural loans, SME loans, export and investment loans, loans to institutions and public economic enterprises, their affiliates, subsidiaries, and associated enterprises, corporate credit cards, and loans to banks or financial institutions.

Additionally, the BRSA updated the exchange rate to 32.83 in the capital adequacy calculations for banks.