PASHA BANK ANNUAL REPOT 2024

3- The Decision (“Decision”) of the Public Oversight, Accounting and Auditing Standards Authority (“POA”) regarding the scope of application of the Türkiye Sustainability Reporting Standards (“TSRS”) was published in the Official Gazette on 29 December 2023, and entered into force as of 1 January 2024. In the Decision, the scope of application of the TSRS 1 “General Requirements for the Disclosure of Sustainability- related Financial Information” and TSRS 2 “Climate-related Disclosures” standards, developed by the POA with consideration of the International Sustainability Reporting Standards, was defined concerning institutions, organizations, and enterprises in Türkiye. According to the Decision, financial institutions and capital market institutions that meet the criteria set forth therein, including all banks except those under the Savings Deposit Insurance Fund (“SDIF”), will be obligated to conduct sustainability reporting under the TSRS. Regarding the transition period, enterprises are not required to present comparative information for the first reporting period in which they apply the TSRS, nor are they required to disclose Scope 3 greenhouse gas emissions in their first two reporting periods. Additionally, enterprises are allowed to publish their sustainability reports for the first annual reporting period after issuing their financial reports for the same period. With the POA Board Decision dated 16 December 2024, and numbered 01/28294, published in 2024, it was further decided that, among the banks and non-bank financial institutions that are mandated to report under the initial Decision, those whose shares are not traded on Borsa İstanbul A.Ş. and who, as of the end of the previous year, have no more than one branch or no more than 250 employees, shall be permitted during the periods in which they are exempt from the obligation to disclose Scope 3 greenhouse gas emissions under Provisional Article 3 of the Decision to report on a voluntary basis. 4- The Capital Markets Board of Türkiye (CMB) has expanded the scope of the mandatory Electronic Application (e-Application) requirement. Pursuant to the CMB Decision dated 25 July 2024, and numbered 39/1162 (“Decision”), as of 5 August 2024, applications to be submitted to the CMB by issuers registered in the Central Registration System (MERSİS), capital market institutions, and other institutions and organizations applying under the Capital Markets Law No. 6362, concerning matters falling within the remit of the Legal Affairs Department, Institutional Investors Department, Intermediary Activities Department, Accounting Standards Department, and the Corporate Finance Department of the CMB, must be submitted electronically via the e-Application System. Applications submitted to the CMB within the scope of the right to petition by courts, public prosecutors, or other relevant persons or institutions, including petitions, requests for opinion, notices, complaints, and similar submissions, are excluded from this requirement. Through this Decision, the CMB has significantly expanded the scope of the obligation to use the e-Application System, which was mandatory only for applications falling under the Corporate Finance Department in the first regulation. 5- Within the scope of the inflation accounting regulation, pursuant to the Decision of the Banking Regulation and Supervision Board (“Board”) dated 5 December 2024, and numbered 11021, it was decided that banks, and financial leasing, factoring, financing, savings financing, and asset management companies, shall not apply inflation accounting in the year 2025. 6- By the Decision of the Banking Regulation and Supervision Board (“Board”) dated 19 December 2024, and numbered 11038, amendments were made to the calculations of the CAR. According to these amendments, the application of a 2% risk weight, which had been applied to cash commercial loans under the standard approach in accordance with the Board Decision INFORMATION ON SIGNIFICANT DEVELOPMENTS RELATED WITH THE BANK’S OPERATIONS AND LEGAL DISCLOSURES 82 PASHA Bank 2024 Annual Report