Communiqué Published On Risk Management Disclosures By Banks In Turkey

The Communiqué on Risk Management Disclosure By Banks was published in Official Gazette number 29511 on 23 October 2015 ("Communiqué"), coming in force on 31 March 2016. The Communiqué outlines procedures and principles of consolidated and unconsolidated risk management disclosure to be made by banks. It also includes obligatory tables and templates in this regard. 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 issued to prevent insufficiency of liquidity caused by risky loans. Member states are expected to harmonize domestic law with