Türkiye’s banking regulator on Tuesday announced it was scrapping the application of inflation accounting for banks, financial leasing, factoring, financing, savings financing and asset management companies.
The decision was taken at a meeting last week, the Banking Regulation and Supervision Agency (BDDK) said in a statement.
The BDDK had previously decided that financial institutions would transition to inflation-adjusted accounting, but later said the practice would not be implemented in 2025.
Adjusting balance sheets to take inflation into account would lead to reduced profits and, as a result, lower taxes.
The Daily Sabah Newsletter
Keep up to date with what’s happening in Turkey,
it’s region and the world.
SIGN ME UP
You can unsubscribe at any time. By signing up you are agreeing to our Terms of Use and Privacy Policy.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.