Although the purchasing power of citizens has declined significantly in recent years when the Turkish economy has been turbulent, banking sectorhas experienced unprecedented growth. Last year, for example, banking sector profits rose by 366 percent. While the annual inflation rate during the same period was 64.27 percent, the enormous growth of the banks caused an involuntary impression on the public. caused discomfort.

However, although industry stakeholders have made more profits in recent years, they are not very happy with the situation they find themselves in. delighted they are not resembling. Even representatives of the banking sector Ministry of Finance and Finance They want to meet him and explain the problems they are experiencing. What exactly are banks concerned about?

Banks want to switch to ‘inflation accounting’

According to a news shared by Reuters, the banking sector has: “inflation accounting“They want to switch to the application. However, this requires government approval and the authorities have made a decision in this regard for the years 2021, 2022 and 2023. they didn’t approve. Industry stakeholders want to meet with the Ministry of Finance and Finance for this very reason.

So what is inflation accounting?

Inflation accounting in high inflation countries your actual financial situation These are calculations made to demonstrate this. 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 circumstances means your purchasing power has doubled. However, if the price of a good you bought for 10 liras last year is 20 liras this year, your purchasing power is actually lower according to inflation calculations. did not change.

According to industry representatives, taking inflation into account would reveal that some banks have suffered losses!

This is exactly the problem that is causing 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, their profitability will drop by half if banks start taking inflation into account. Even some banks they damaged will arise. This will improve the public image and reveal the truth.

What does the government have to say about the banks for not imposing inflation accounting?

Inflation accounting doesn’t just create income and expense statements for companies. However, a company will pay tax amount It also determines inflation accounting. If the system is not implemented, higher amounts of tax will be paid. This is what one of the officials who spoke to Reuters noted. According to the beliefs of the stakeholders in the sector, the government, not wanting to lose revenue, introduced inflationary calculations in the banking sector. keeps it out.