Prohibition of Inflation Accounting Practice for Banks by BDDK

BDDK Announces Its Final Decision on Inflation Accounting Practice

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

Not Applicable to Banks and Financial Institutions

The announcement stated that inflation accounting will not be applicable to banks, financial leasing, factoring, financing, savings financing, and asset management companies. This situation could lead to significant changes in the accounting practices of the relevant institutions.

Impacts on the Financial Sector

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