The Law on the Central Bank of the Republic of Turkey1 No. 1211 and the Law on Payment and Securities Settlement Systems, Payment Services and Electronic Money Institutions2 No. 6493 granted the Central Bank of the Republic of Turkey (CBRT) certain duties and powers in payment and securities settlement systems (systems) area.
In this framework, in the fifth paragraph of Article 5 of the Regulation on Oversight of Payment and Securities Settlement Systems, which came into force by being published on the Official Gazette No. 29044, dated June 28, 2014, it is stated that the objectives to be achieved with and the policies to be pursued in oversight activities shall be disclosed to public by the CBRT.
In this context, by taking into account the relevant national regulations and international practices and standards, the CBRT’s main objective regarding payment and securities settlement systems and its oversight activities to be carried out in this area, is to ensure the “safe, uninterrupted, efficient and effective functioning of the systems”.
Main policies and activities pursued by the CBRT in order to achieve this objective, which is critical for sustaining financial stability and for effective implementation of monetary policy, are as follows:
- Making the necessary regulations, which are up to date and in compliance with international standards,
- Conducting oversight of the systems in order to ensure their compliance with national and international regulations and standards,
- Ensuring the systems to operate in compliance with the “Principles for Financial Market Infrastructures” issued jointly by the Committee on Payments and Market Infrastructures3 (CPMI) and the International Organization of Securities Commissions (IOSCO),
- Monitoring the national and international developments which may affect the effectiveness and the safety of the systems,
- Ensuring and maintaining the confidence in the systems,
- Carrying out activities regarding the systems in cooperation with the authorities, which are responsible for supervision of the financial system, the system operators and the system participants.
1Law No.1211 Article 4: “The fundamental duties of the Bank shall be: ..... (I/f) to regulate the volume and circulation of the Turkish Lira, to establish payment, securities transfer and settlement systems, to ensure the uninterrupted operation and oversight of the systems established and to be established and to make the necessary regulations, to determine the methods and instruments including electronic environment that shall be used for payments,,.....”
2Law No. 6493 Article 4: (3)“The Bank shall be authorized to make the necessary arrangements to ensure smooth and uninterrupted operation of the systems.”
Law No. 6493 Article 8: (1) "The Bank shall be authorized to conduct oversight of the systems established or to be established in order to ensure their uninterrupted operation."
3As of 1 September 2014, the name of the Committee on Payment and Settlement Systems (CPSS) has been changed to the Committee on Payments and Market Infrastructures (CPMI).