BRSA Announcement on the Calculation of Capital Adequacy

BRSA announcement on the calculation of capital adequacy

According to the announcement on the BRSA's website, it has been decided that, for securities held by banks in the "Securities at Fair Value through Other Comprehensive Income" portfolio as at 1 January 2024, if their net valuation differences are negative, banks may disregard these differences in the amount of equity calculated under the Regulation on Equity of Banks published in the Official Gazette No. 28756 of 5 September 2013 and used for the capital adequacy ratio, and that the existing provisions of that regulation shall continue to apply to "Securities at Fair Value through Other Comprehensive Income" acquired after 1 January 2024.

According to the announcement, it was also decided that the practice set out in Board Decision No. 10496 of 31 January 2023 — allowing the Central Bank of the Republic of Türkiye (CBRT) foreign exchange buying rate of 30 December 2022 to be used, in calculating the amount subject to credit risk under the Regulation on the Measurement and Assessment of Capital Adequacy of Banks published in the Official Gazette No. 29511 of 23 October 2015, for the amounts of monetary assets and of non-monetary assets (other than foreign currency items measured at historical cost) valued under Turkish Accounting Standards and the related specific provisions — shall continue from 1 January 2024, until a Board decision to the contrary, using the CBRT foreign exchange buying rate of 26 June 2023.