The interest rate for cash advance withdrawals by credit card increased from 4.42% to 5%.
Within the scope of additional tightening steps, the Central Bank of the Republic of Turkiye (CBRT) increased the interest rate for cash withdrawals from credit cards and overdraft accounts to a level compatible with the consumer loan interest rate, and took new steps to increase the share of Turkish lira (TL) deposits in the banking system.
CBRT’s Communiqué on Amending the Communiqué on Maximum Interest Rates to be Applied in Credit Card Transactions was published in the Official Gazette.
CBRT made a change in the calculation method of the monthly maximum contractual interest rate to be applied to cash advance transactions made from credit cards and overdraft accounts. According to the new method, the calculated monthly maximum contractual interest rate was increased from 4.42% to 5%.
After the recent increase in consumer loan interest rates, the interest rate applied for cash advances remained lower than the consumer loan interest rate. While the difference has been eliminated with the change, the rates in question will be valid from today.
Monthly increase target for banks’ legal entity TL share
With the implementation instruction sent by the Central Bank to the banks, the TL share targets applied to real and legal persons were also updated.
Accordingly, a monthly increase target was introduced for the legal entity TL share of banks. Previously, there was no increase target for the legal entity TL share compared to the previous month, and the level on August 18, 2023 had to be maintained.
In addition, the monthly increase targets for the real person TL share, which were determined differently according to banks’ TL share levels, were updated and the commission rate to be applied in case the targets are not met was increased.
The application will be valid from today.
Source: Trthaber / Prepared by Irem Yildiz