Turkey’s ‘national and native’ credit rating agency to be established

The Turkish Banking Regulation and Supervision Agency (BDDK) has passed a regulation to establish an independent, local credit rating agency, Sabah newspaper reported on Friday. 

The new regulation will allow the licensing of credit rating agencies and their activities, according to Mehmet Ali Akben, the head of the BDDK.

“We have received demands from the Banks Association of Turkey and the Participation Banks Association of Turkey to establish an agency,” Akben said, adding that they wanted the agency to have a broader base, possibly including the Union of Chambers and Commodity Exchanges of Turkey, financial institutions and strong corporations. 

"In Turkey, we have been working for a long time to establish an independent and local credit rating agency which is alive to Turkey's requirements and has a strong, high-level acceptability, and we have concluded this work at last,” Akben added. 

According to Akben, the BDDK examined the organisational structures of international credit agencies while developing the regulation and attached specific important to the independency of the local agency to be established.

Akben announced plans to establish a local credit agency in March after a series of downgrades of Turkey’s sovereign debt by international rating agencies, which were accused by the Turkish government of trying to weaken the Turkish economy. 

“Do not look at the monkey business of certain credit ratings agencies,” Turkish President Recep Tayyip Erdoğan said on Mar. 9. “They want to squeeze Turkey into a corner.”