Banking Law No. 5411 PDF
Preview Banking Law No. 5411
Banking Law No. 5411 Publication No: 275 Third Edition December 2013, İstanbul ISBN 978-975-8564-90-3 (Print) ISBN 978-975-8564-91-0 (Online) Certificate No: 17188 2013.34.Y.8564.275 The Banks Association of Turkey Nispetiye Caddesi Akmerkez B3 Blok Kat:13 34340 Etiler-İSTANBUL Telephone : 212-282 09 73 Fax : 212-282 09 46 Website : www.tbb.org.tr Printed in Esen Ofset İkitelli Organize Sanayi Bölgesi Ziya Gökalp Mahallesi Atatürk Bulvarı No: 55/G 34490 Başakşehir/İstanbul Tel: 212-549 25 68 Fax: 212-549 25 74 * The following translation is prepared by the Banks Association of Turkey and has no legal value. CONTENTS ARTICLES PAGE PART ONE General Provisions Article 1 Objective 15 Article 2 Scope 15 Article 3 Definitions and abbreviations 16 Article 4 Fields of activity 20 Article 5 Indirect share ownership 22 PART TWO Transactions Subject to Permission SECTION ONE Permissions for Establishment and Operation Article 6 Permission for establishment or opening branches and representative offices in Turkey 23 Article 7 Establishment conditions 24 Article 8 Qualification for founders 25 Article 9 Requirements for the opening of branches in Turkey by banks headquartered abroad 27 Article 10 Operating permission 28 Article 11 Revocation of establishment permission 30 Article 12 Revocation or restriction of operating permission 30 Article 13 Opening domestic branches 31 Article 14 Cross border activities 32 Article 15 Permission for authorization of independent audit, valuation, rating and outsourcing institutions 32 SECTION TWO Provisions Pertaining to Articles of Association Article 16 Amendments in Articles of Association 32 Article 17 Capital increases 33 Article 18 Acquisition and transfer of shares 33 3 SECTION THREE Merger, Disintegration, Changes of Shares and Voluntary Liquidation Article 19 Merger, disintegration and change of shares 35 Article 20 Voluntary liquidation 36 SECTION FOUR Rejection of Applications for Permission Article 21 Rejection of applications for permission 37 PART THREE Corporate Governance SECTION ONE Management Article 22 Principles of corporate governance 38 Article 23 Board of directors 38 Article 24 Audit committee 39 Article 25 General managers and deputy general managers 41 Article 26 Prohibition from working and signing 42 Article 27 Oath and declaration of property 42 Article 28 Docket 43 SECTION TWO Internal Systems Article 29 Obligations pertaining to internal systems 43 Article 30 Internal control system 44 Article 31 Risk management system 44 Article 32 Internal audit system 44 SECTION THREE Authorized Institutions Article 33 Independent audit firms 45 Article 34 Valuation and rating institutions 46 Article 35 Outsourcing institutions 46 Article 36 Liability insurance 47 4 SECTION FOUR Financial Reporting Article 37 Accounting and reporting system 47 Article 38 Consolidated financial reports 48 Article 39 Signing, submission, announcement and auditing of financial reports 48 Article 40 Annual activity report 49 Article 41 Responsibility 49 Article 42 Record keeping 50 PART FOUR Protective Provisions SECTION ONE Own funds and Standard Ratios Article 43 Protective regulations 51 Article 44 Paid-up capital, reserved funds and own funds 52 Article 45 Capital adequacy 52 Article 46 Adequacy of liquidity 53 Article 47 Elimination of excesses 53 SECTION TWO Loans and Risk Group Article 48 Loans 53 Article 49 Risk group 54 Article 50 Conditions of granting loans to the risk groups including the bank and its employees 55 Article 51 Extending loans 57 Article 52 Monitoring of loans 58 Article 53 Loan provisions and guarantees 59 SECTION THREE Restrictions Article 54 Loan limits 59 Article 55 Transactions that are not subject to loan limits 61 Article 56 Restrictions pertaining to partnership shares 62 Article 57 Transactions on property and commodity 62 5 Article 58 Transactions pertaining to funds and foundations 63 Article 59 Grant limits 63 PART FIVE Provisions Regarding Collection of Deposits and Participation Funds Article 60 Acceptance of deposits and participation funds 64 Article 61 Withdrawal of deposits and participation funds 66 Article 62 Prescription 66 Article 63 Insurance of deposits and participation funds 66 Article 64 Deposits and participation funds not covered by insurance 68 PART SIX Supervision and Measures to be Taken Article 65 Supervision 69 Article 66 Consolidated supervision 69 Article 67 Cases where measures are required to be taken 70 Article 68 Corrective measures 71 Article 69 Rehabilitating measures 71 Article 70 Restrictive measures 72 Article 71 Revocation of operating permission or transfer to the Fund 73 Article 72 Measures to be taken against systemic risk 75 PART SEVEN Legal Obligations Article 73 Confidentiality 76 Article 74 Protection of reputation 79 Article 75 Ethical principles 79 Article 76 Customer rights 80 PART EIGHT Development and Investment Banks and Financial Holding Companies Article 77 Provisions pertaining to development and investment banks 81 Article 78 Financial holding company 81 6 PART NINE Associations of Institutions Article 79 The Banks Association of Turkey and The Participation Banks Association of Turkey 82 Article 80 Duties and powers of associations 82 Article 81 Organs and statute 83 PART TEN Provisions Pertaining Banking Regulation and Supervision Agency SECTION ONE Banking Regulation and Supervision Agency Article 82 Establishment and independence 85 SECTION TWO Banking Regulation and Supervision Board Article 83 Banking Regulation and Supervision Board 86 Article 84 Appointment of members 86 Article 85 Terms of office of the chairman and members 87 Article 86 Prohibitions 88 Article 87 Working principles of the Board 90 Article 88 Duties and powers of the Board 92 SECTION THREE Organization of the Chairman’s Office Article 89 Chairman 93 Article 90 Vice chairman 94 Article 91 Service units of the Agency 95 Article 92 Agency personnel 96 SECTION FOUR Duties, Powers and Responsibilities Article 93 Duties and powers of the Agency 100 Article 94 Development of the sector 102 Article 95 On-site and off-site supervision 103 Article 96 Document and information requests 106 7 Article 97 Transparency and accountability 107 Article 98 Cooperation among institutions 108 Article 99 Financial sector commission 109 Article 100 Coordination committee 109 SECTION FIVE Miscellaneous Provisions Article 101 The budget of the Agency and the audit of its accounts and expenditures 110 Article 102 Salaries, financial and other social rights 112 Article 103 Board members leaving office 114 Article 104 Penal and legal liabilities of Board members and Agency personnel 115 Article 105 Right to appeal Board and Agency decisions 117 PART ELEVEN Provisions Pertaining to Banks Whose Operating Permission Have Been Revoked or That Have been Transferred to the Fund Article 106 Revocation of operating permission decisions 118 Article 107 Provisions regarding the banks transferred to the Fund 120 Article 108 Misuse of bank resources 124 Article 109 Common provisions applicable to banks whose operating permission has been revoked or that have been transferred to the Fund 126 Article 110 Personal liability 128 PART TWELVE Provisions Regarding Savings Deposit Insurance Fund SECTION ONE Savings Deposits Insurance Fund Article 111 Establishment and independence of the Fund 129 8
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