Legal AlertTerms and Interdiction İmposed On Digital Banks

27 August 2021

“The Draft Regulation on Operating Principles of Digital Bank and Service Model Banking ”, (“Draft Regulation“) has been drafted by the Banking Regulation and Supervision Agency (“BDDK”) and has been published in the Official Website ( on 19.08.2021. The Draft Regulation regulates the conditions for providing the operating principles and banking services of branchless banks, which only serve through digital channels, as a service model to demanding businesses and innovative enterprises in order to encourage financial innovation in the banking sector, increase financial inclusion and facilitate access to banking services. 

The terms regulated with the Draft Regulation are as follows:

Terms and Interdiction İmposed On Digital Banks

  • Activity Interdictions;
  • Customers of digital banks will only consist of financial consumers and SMEs.
  • The total of unsecured cash loans that digital banks can extend to a certain customer who is a financial consumer cannot exceed 4 times the average monthly net income of the relevant customer. 
  • The draft regulation also includes provisions against digital banks setting aggressive pricing policies, such as imposing extremely low prices on financing products compared to other banks or imposing excessively high interest rates on deposit products. In addition, digital banks will announce the committed continuity percentage values on the basis of each distribution channel for the electronic banking services they offer, so that they can be seen on the home page of their internet addresses.
  • Terms;
  • The minimum capital required for the establishment of digital banks will be 1 billion Turkish Liras, and the BRSA can increase this amount.
  • Digital banks will be required to set up at least one physical office to handle customer complaints. Units to be established to handle customer complaints will not be used as a branch other than for this purpose.

Principles On Service Model Banking

The service bank can only provide service model banking services to domestically resident interface developers.

In summary, the terms and prinsiples of Digital Banks and Service Model Banking  has been determined. Banks other than digital banks that have obtained operating license are not required to make a separate application within the framework of this Regulation in order to transfer their activities to digital.

According to the Draft, Regulation will enter into force as of 1/1/2022.

You may reach the full Turkish version of the Draft Regulation via the link below: