"Ban on Inflation Accounting Application for Banks by BDDK"

BDDK Announces Its Final Decision on Inflation Accounting Practice

The BDDK (Banking Regulation and Supervision Agency), which has a significant impact on the banking sector in Turkey, made a new announcement regarding inflation accounting.

Not Applicable for Banks and Financial Institutions

In the announcement, it was stated that inflation accounting will not be implemented by banks, financial leasing, factoring, financing, savings financing, and asset management companies. This situation could lead to significant changes in the accounting practices of these institutions.

Effects on the Financial Sector

This decision could have an important impact on the overall health of Turkey’s financial system. In particular, it may affect the compliance of banks' financial reporting with ESG criteria during periods of high inflation.