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Financial authorities in Türkiye have ordered banks to reduce credit card and overdraft account limits that exceed legal income-based thresholds.
The move follows a Financial Stability Committee meeting on Jan. 21, 2026, chaired by Treasury and Finance Minister Mehmet Simsek, where officials reviewed banking sector practices and flagged breaches in consumer credit rules.
The decision targets credit cards and overdraft facilities known in Türkiye as Kredili Mevduat Hesabi (KMH). Regulators say some banks assigned limits far above legally permitted levels.
Banks now face pressure to correct these practices to avoid heavy fines from the Banking Regulation and Supervision Agency, known by its Turkish abbreviation BDDK.
Authorities indicate that standard cardholders will not face changes. The measures focus on customers whose credit limits reached extreme multiples of their monthly income.
Türkiye’s Banking Regulation and Supervision Agency sets binding ceilings for consumer credit exposure.
Under current rules, banks may assign credit card limits up to four times a customer’s monthly income. Overdraft limits through KMH accounts must remain capped at three times the monthly income.
Regulatory reviews found that some banks exceeded these caps despite clear legal provisions.
According to the findings shared at the Financial Stability Committee meeting, certain private banks raised credit card and KMH limits to five to ten times monthly income.
Banks promoted campaigns that encouraged customers to activate overdraft facilities or increase card spending to meet growth targets and avoid year-end balance sheet constraints.
Officials also raised concerns that excessive limits increased household debt vulnerability and contributed to demand-driven inflation pressures.
Reports note that limited financial literacy among some consumers worsened exposure to unsustainable borrowing.
Following the Jan. 21 meeting, economic authorities decided to issue formal instructions to banking sector representatives.
Banks must align credit limits with legally defined income ratios. Institutions that fail to comply risk substantial administrative fines from the Banking Regulation and Supervision Agency.
Banks have begun preparing to reduce unlawfully increased limits to avoid enforcement action. Sources indicate that adjustments will target extreme cases rather than introduce new system-wide restrictions.
Who will be affected:
The Financial Stability Committee will continue monitoring consumer credit practices as Türkiye tightens oversight of household borrowing growth.
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