New Regulation for Savings Finance Companies: Contract Numbers Limited, Maximum Contract Amounts Updated

The Banking Regulation and Supervision Agency (BDDK) has tightened the rules for savings finance companies. Accordingly, the number of contracts that a person can make with the same savings finance company has been limited to two, one for vehicle financing and one for housing or roofed workplace financing. With the regulation, the maximum contract amount for vehicle financing has been increased to 6 million 250 thousand lira, and for housing or roofed workplace financing to 62 million 500 thousand lira. The new rules will come into effect on October 1. According to the directive sent to the Financial Institutions Association, the areas where the accumulated amounts in the savings fund pools and company accounts can be evaluated have been restricted to prevent investment in risky assets and to evaluate these resources in relatively risk-free assets that can be liquidated quickly. The limits for high-value contracts have also been increased. The limit for high-value contracts has been increased from 2 million 509 thousand 800 lira to 5 million lira, and for housing or roofed workplace financing contracts from 6 million 274 thousand 500 lira to 12 million 500 thousand lira. Additionally, the ratio of the total amount of high-value contracts to the total contract amount for the relevant period has been limited to 5 percent. However, for companies established after January 1, 2025, a gradual transition is foreseen, and this ratio will be applied at 15 percent until June 30, 2027, and at 10 percent between July 1 and December 31, 2027.