PASHA BANK ANNUAL REPOT 2024

Disclosures Concerning Administrative or Judicial Sanctions Imposed on the Bank and its Management due to Practices in Violation of Regulations There were no administrative or judicial sanctions imposed on the members of the Board of Directors due to regulatory violations in accordance with Banking Law and related legislation. In 2024, the obligations regarding the administrative and irregularity fines practiced by the regulatory and supervisory authorities for the legislative discords were met by means of benefiting from the discount permitted by the legislation and a total amount of TL 6,530,729 was paid. Lawsuits against the Bank and any Probable Outcomes That Could Impact the Bank’s Financial Situation and Operations There are no lawsuits filed against the Bank in 2024 significant enough to have a material impact on its financial situation or operations. Information on Legislative Changes That May Significantly Affect the Bank’s Operations 1- In 2024, changes were made to the obligations of banks for securities maintenance within the Central Bank of the Republic of Türkiye (CBRT). Within the scope of the Communiqué on Securities Maintenance, a regulation issued by the CBRT, it was announced on 6 April 2024, through Announcement No. 2024-19 during the first quarter of the year, that, as part of the policy simplification steps, the securities maintenance ratio applied to liabilities subject to securities maintenance would be reduced from 4% to 1%, that the implementation regarding securities maintenance based on loan growth would be terminated, and that the overall securities maintenance practice was planned to be ended in a short while. Following the announcement that the practice was planned to be terminated as stated therein, the Communiqué on the Securities Maintenance, which was published in the Official Gazette dated 10.06.2022, and numbered 31862 and had entered into force, was repealed by an amending communiqué published by the CBRT in the Official Gazette on 9 May 2024, and thus, banks’ obligation for securities maintenance within the CBRT was brought to an end. 2- On the same day in 2024, when the CBRT repealed the Communiqué on Securities Maintenance, another regulatory amendment published in the Official Gazette concerned the reserve requirements of banks within the Central Bank of the Republic of Türkiye (CBRT). The fifth paragraph of the Provisional Article 16 titled “Temporary practice based on loan growth” in the Communiqué on Reserve Requirements was amended to read as follows: “The provisions of this article shall not apply to banks and financing companies whose loan growth remains below a level determined within the framework of an indicator based on the ratio of loans to balance sheet size, according to the procedures and principles set by the Central Bank.” With this amendment, while the obligations related to securities maintenance based on loan growth rates were terminated for the periods following the calculation date of 23.02.2024, it was decided that, in the case of reserve requirements, banks’ obligations within the CBRT would continue based on loan growth rates relative to their balance sheet sizes. INFORMATION ON SIGNIFICANT DEVELOPMENTS RELATED WITH THE BANK’S OPERATIONS AND LEGAL DISCLOSURES 81 Information on Management and Corporate Governance Principles