Turkish banks to use 'inflation accounting'

Turkey's banks and other financial institutions will have to wait until 2025 to apply inflation-adjusted accounting to their balance sheets, the BDDK banking watchdog said.

"It has been decided that banks, leasing, factoring, financing, savings financing and asset management companies will switch to inflation accounting as of 01.01.2025," the regulator said.

In 2023, the Turkish government decided that companies should apply inflation-adjusted accounting methods to their balance sheets from end-2023 to 2026, a policy seen to benefit companies that are invested in fixed assets or are highly leveraged.

Inflation has risen to 64.77% and is expected to build until around May before easing.