Communiqué Published For Risk Assessment Models Used By Banks In Turkey

The Communiqué on Calculating Market Risks Using Risk Assessment Models and Evaluating Risk Assessment Models ("Communiqué") was published in Official Gazette number 29511 on 23 October 2015. It was issued by the Banking Regulation and Supervision Agency ("Agency") and enters into effect on 31 March 2016. The Communiqué outlines principles, procedures and standards for risk assessment models for banks when calculating and assessing market risks. It represents a more compatible regulatory structure with the Basel standards than previously existed in Turkey.

The Basel Committee on Banking Supervision ("Basel Committee") frames general bank supervision and regulation worldwide. The Communiqué introduces amendments to align Turkish regulation with the standardized approach introduced in 2012 by the Basel Committee's Regulatory Consistency Assessment Programme, particularly the Third Basel Accord (Basel III). Basel III was developed to prevent insufficiency of liquidity