Communique on Amendments to the Communique on Public Disclosures Regarding Risk Management by Banks
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This Turkish regulatory amendment, published on 31 January 2026, updates the disclosure requirements for interest rate risk arising from banking book positions (BHFOR). It revises Article 15 and the section title to mandate detailed qualitative and quantitative public disclosures. Banks must publish Table BHFORA with risk management objectives, policies, and assumptions, plus Template BHFOR1 showing Economic Value of Equity (EVE) changes (EDD) and Net Interest Income (NII) changes (NFGD) under six standardized interest rate shock scenarios for current and prior year-end. Calculations follow the May 2025 Standard Approach Regulation and related BRSA guidelines. A transitional provision delays mandatory disclosure of certain NFGD and prior-period EVE data until 31 December 2026. The goal is to enhance market understanding of banks’ sensitivity to interest rate changes.
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Key Changes
- Section title changed to 'Explanations Regarding Interest Rate Risk Arising from Banking Accounts'
- New mandatory Table BHFORA requires qualitative explanations of risk definition, policies, measurement frequency, shock scenarios, modelling assumptions and hedging practices
- Mandatory Template BHFOR1 requires disclosure of EDD and NFGD under six standardized interest rate shock scenarios (parallel up/down, steepening/flattening, short rate up/down) for current and previous year-end
+ 3 more changes with Pro
Obligations
What this law requires
Publish Table BHFORA containing qualitative and quantitative information on risk management objectives and policies related to BHFOR (interest rate risk from banking book positions) on an annual basis at year-end.
Publish Template BHFOR1 showing Economic Value of Equity (EVE) changes (EDD) and Net Interest Income (NII) changes (NFGD) under six standardized interest rate shock scenarios for both current year-end and prior year-end on an annual basis.
Calculate EDD risk amounts according to the Standard Approach Regulation (12 May 2025, Official Gazette No. 32898) and related BRSA guidelines (2025/1 Circular and 17 April 2025 Board Decision No. 11197).
Calculate NFGD amounts in accordance with the Guidelines on Management of Interest Rate Risk from Banking Accounts.
Disclose detailed qualitative information in Table BHFORA including: (a) how BHFOR is defined for risk control and measurement; (b) BHFOR management and risk mitigation strategies; (c) calculation frequency and measurement methods; (d) interest rate shock and stress scenarios used; (e) differences between internal IMS assumptions and template assumptions; (f) hedging framework and accounting treatments; (g) fundamental modeling assumptions underlying EDD and NFGD calculations.