BRSA is the abbreviation of the Banking Regulation and Supervision Agency (BDDK in Turkish).
The BRSA is an autonomous agency established with the now-repealed Banks Law No. 4389, published in the Official Gazette on 23 June 1999, and operational since 31 August 2000. Its purpose is to protect the rights and interests of savers in Turkey, to create the right environment for banks and special finance institutions to operate soundly, efficiently and competitively on a global scale within market discipline, and thereby to contribute to the country's long-term growth and stability. It is organized as a Board and an Agency. Implementing the decisions and regulations made by the Board, as its decision-making body, is among the powers and duties of the Agency.
What Are the Powers and Responsibilities of the BRSA?
The BRSA is responsible for ensuring that banks can operate in a secure market environment by preventing any practice that would endanger the country's economy. Obliged to take every necessary measure and decision for this purpose, the BRSA is the authority competent for all decisions to be taken in determining banking legislation, developing the financial services sector, and creating an environment of fair competition among financial service providers.
The BRSA is also responsible for granting the required permits and licenses for the establishment of any bank with domestic or foreign capital in our country. The agency ensures that the conditions and provisions required to open a bank are met; after the preparations are completed and it approves the opening of the bank, it continues to supervise the bank's activities and leads the enforcement of the laws.
When any irregularity or corruption is detected in the operations of banks, the BRSA also has the authority to decide to transfer those banks to the TMSF. TMSF stands for the Savings Deposit Insurance Fund. While this institution carries out the procedures relating to the banks transferred to it, the BRSA is responsible for repaying citizens' deposits held in those banks.
The BRSA independently, and under its own responsibility, carries out and exercises the regulatory and supervisory duties and powers given to it by Banking Law No. 5411 and other legislation. The Agency's decisions cannot be subjected to review on grounds of expediency. No organ, authority, body or person may give orders or instructions to influence BRSA decisions.
The Banking Regulation and Supervision Board is the decision-making body of the BRSA. The Board consists of seven members, one of whom is the chairman and one the deputy chairman. The Chairman of the Board is also the head of the Agency.
Helping ensure that the provisions of the Banking Law are applied without disruption, the BRSA ensures that banks carry out their activities in accordance with the law and that these activities proceed in a secure environment.
The BRSA's objectives also include protecting the rights of depositors, ensuring that the credit system applied in banks is used correctly and effectively, and maintaining confidence and stability in the financial markets.
In its supervision of banks, the BRSA exercises every kind of control, from the establishment stage of banks to their management and operations, and to the matters that must be observed in cases such as transfer or merger. The Banking Regulation and Supervision Board, which carries out these controls, consists of seven members. One of these members serves as chairman and another as deputy chairman. The Board meets once a week to evaluate the supervisory work. When necessary, the presence of five members at the meeting is sufficient for the Board to convene.
BRSA official website: http://www.bddk.org.tr
