Cost Warning for Commercial Loans to Banks by the Central Bank

According to the news made by Reuters, it was stated that the Central Bank practices are not very common in the sector in general. In the letter sent to the banks by the CBRT, the Central Bank of the Republic of Turkey, it was stated that if such practices are continued, it may be necessary to make additional regulations in order to increase predictability and transparency and to achieve the objectives of preventing overcharges.
In the letter sent to the banks by the CBRT, it was stated that they should end the practices that increase commercial loan costs by circumventing the regulations differently.
In the letter sent to the banks by the Central Bank, which was seen by Reuters on Tuesday, it was stated that during the inspections, it was stated that there were findings regarding the implementation of practices that would exceed the regulations in different ways and increase the costs of commercial loans. In practice, it has been stated that it has been determined that some banks collect fees by extending commercial loans for a short period of time within the framework of the 'Extension/Payment Plan, structuring and Interest Change Fee' item, which has not yet set a maximum limit.
In a statement made to Reuters by the bankers, the Central Bank stated that the high remuneration was due to the widening loan-deposit interest difference.
In the statement made by the Central Bank, it was stated that the fee to be charged should not be too far from the maximum limits set for the loan disbursement fee.
The CBRT also stated that the practices identified during the audit process are not very common across the industry.