The Turkish Banking Regulation and Supervision Agency (the BRSA) has taken on the mission of changing the banking system radically and in furtherance of its efforts has issued the Regulation on the Establishment and Activities of Asset Management Companies (AMCs).
The Regulation defines AMCs as those companies whose function is to purchase assets (including receivables) held by banks, special finance institutions and other financial institutions in order to sell such assets after restructuring. Other financial institutions include companies such as factoring and financial leasing companies, which are in the business of lending. AMCs may be established with the permission of the BRSA Board as joint stock corporations and existing companies can also convert themselves into AMCs with the permission of the BRSA Board. Incorporators must meet certain qualifications, similar to those that are required for the incorporators of banks.
AMCs' activities are listed exhaustively in the Regulation. Among the activities listed are the purchase and sale of assets held by banks, special finance institutions and other financial institutions, the provision of consulting services for the restructuring of receivables and assets for sale, the issuance of securities and carrying out securities-related transactions and the investment in securities issued by another AMC or issued with the intermediation of an AMC.
Coupled with other reforms introduced, there is reason to believe that AMCs will help the financial system in Turkey if the BRSA continues to comply with international standards and fully enforce them.