Turkey Spares Banks From Inflation Accounting in Earnings Boost
- Banking stocks expected to benefit as risk is removed
- Turkish lenders have outperformed the benchmark in 2024
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Turkey’s banking regulator said lenders and financial companies won’t have to implement inflation accounting in 2025, removing a looming burden on bank earnings before full-year results are announced.
The watchdog, known by its Turkish initials BDDK, said late on Thursday that banks, leasing, factoring, savings finance companies and asset management firms won’t have to shift to inflation accounting, which involves adjusting balance sheets to reflect the impact of extreme price changes on key metrics including profitability.