It was claimed that the banking sector was making losses

Although the purchasing power of citizens has decreased significantly in the last few years when the Turkish economy was turbulent, banking sectorhas experienced unprecedented growth. For example, last year, the profits of the banking sector increased by 366 percent. While annual inflation was at 64.27 percent in the same period, the massive growth of banks caused an involuntary impression on the public. caused discomfort.

However, although industry stakeholders have been making more profits in the last few years, they are not very happy with the situation they are in. pleased they are not looks like. Even banking sector representatives Ministry of Treasury and Finance They want to have a meeting with him and explain the problems they are experiencing. So what exactly are banks worried about?

Banks want to switch to “inflation accounting”

According to a news shared by Reuters, the banking sector, “inflation accounting” They want to switch to the application. However, this requires government approval and the authorities have made a decision on this issue for the years 2021, 2022 and 2023. they did not approve. Industry stakeholders want to meet with the Ministry of Treasury and Finance for this very reason.

So what is inflation accounting?

Inflation accounting in countries with high inflation your real financial situation These are calculations made to show. Let’s explain this in a rough way: Let the salary you receive in November 2023 double the salary you receive in November 2022. Just looking at these conditions, it means your purchasing power has doubled. However, if the price of a good you bought for 10 lira last year is 20 lira this year, your purchasing power is actually lower according to inflation accounting. has not changed.

According to sector representatives, if inflation accounting was done, it would be revealed that some banks made losses!

This is exactly the issue that creates discomfort in the banking sector. Industry representatives, the profitability shown by the figures They say it is very high but in reality there is no such thing. According to representatives, if banks start accounting for inflation, their profitability will drop by half. Even some banks they damaged will emerge. This will improve the public image and reveal the truth.

What does the government have to say about banks that they do not impose inflation accounting?

Inflation accounting does not only create income and expense statements of companies. However, a firm will pay tax amount It also determines inflation accounting. If the system is not implemented, higher amounts of tax are paid. This is what one of the officials who spoke to Reuters pointed out. According to the beliefs of the sector stakeholders, the government, which did not want to lose income, implemented inflation accounting in the banking sector. keeps it out.