Central Bank in the International Finance Arena

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a. Financial Stability Board (FSB)

The fundamental duty of the FSB is to coordinate the work of national financial authorities and international standard-setting bodies to ensure financial stability. Developing and promoting the implementation of effective regulatory and supervisory frameworks as well as policies regarding other financial sectors are also among the responsibilities of the FSB.

Turkey became a member of the FSB on 12 March 2009, represented by the CBRT at the FSB Plenary. In 2015, during the review of the FSB’s representation structure, Turkey was granted an additional seat at the FSB Plenary. Since March 2015, Turkey has been represented at the FSB Plenary by both the CBRT and the Undersecretariat of Treasury. The other related authorities in Turkey also contribute to the work carried out by the FSB.

In addition to its seat at the FSB Plenary, the CBRT represents Turkey at the FSB’s standing committees, namely the Standing Committee on Standards Implementation and the Standing Committee on Assessing Vulnerabilities. It is also actively involved in the work of several working subgroups.

The CBRT is also the co-chair of the Middle East and North Africa (MENA) Regional Consultative Group, and this title grants the Bank the right to participate in FSB Steering Committee meetings.

 

b. Basel Committee on Banking Supervision (BCBS)

The BCBS is a platform established to ensure international standards for banks all around the world. The membership of the BCBS was expanded following the global financial crisis in 2008 to increase international cooperation and coordination in banking supervision. The Banking Regulation and Supervision Agency (BRSA) of Turkey became a member of the BCBS on 25 May 2009, followed by the CBRT on 1 July 2009.

The CBRT attends several working groups of the BCBS and contributes to its policy development process by taking into account the Turkish banking system.

The 17th International Conference of Banking Supervisors, which was organized by the BCBS to enhance communication among national authorities, was held in Istanbul in 2012 and co-hosted by the CBRT and the BRSA.

 

c. International Monetary Fund (IMF)

The IMF, in cooperation with the World Bank, carries out Financial Sector Assessment Programs (FSAP) in the field of financial stability. The FSAP helps produce policy responses for risks and vulnerabilities by assessing the financial sector. The FSAPs on Turkey were conducted in 2007 and 2011.

 

d. Organization for Economic Cooperation and Development (OECD)

Turkey is a founding member of the OECD, and the CBRT contributes to its work in several areas. In the meetings of the OECD Financial Markets Committee, global financial developments are discussed, international cooperation is enhanced via the sharing of country experiences and improvement of coordination in policy implementation is sought.

The CBRT is also a member of the International Network on Financial Education (INFE) and is involved in the work of its sub-committees.

 

e. Islamic Financial Services Board (IFSB)

The IFSB, which became operational in 2003, aims to promote the development of the Islamic financial sector by adapting the existing international standards to Islamic principles or introducing new standards. Additionally, it provides guidance on effective supervision of institutions offering Islamic financial products, and develops criteria on the identification, measurement and management of risks in the sector.

The CBRT became a full member in 2013, together with the related authorities in Turkey. The CBRT participates in the meetings and work of the General Assembly and the several working groups under the IFSB on a regular basis.

 

f. International Islamic Liquidity Management Corporation (IILM)

Established in 2010, the IILM works to create and issue financial instruments conforming to Islamic principles to facilitate cross-border Islamic liquidity management for institutions offering Islamic financial services.

The CBRT is among the shareholders of the IILM, and participates in the General Assembly, Governing Board, Board Executive Committee, Board Audit Committee and Board Risk Management Committee as well as several working groups.