Central Bank in the International Finance Arena
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. Türkiye 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, Türkiye was granted an additional seat at the FSB Plenary. Since March 2015, Türkiye has been represented at the FSB Plenary by both the CBRT and Republic of Türkiye Ministry of Treasury and Finance. The other related authorities in Türkiye also contribute to the work carried out by the FSB.
In addition to its seat at the FSB Plenary, the CBRT represents Türkiye 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.
FSB member states have committed to participate periodic peer reviews in accordance with Article 6.1 of the FSB Charter. Peer review is an institutional mechanism that supports the full, timely and consistent implementation of agreed G20/FSB financial reforms. Thematic and country peer reviews are carried out by the FSB. Thematic evaluations focus on the implementation and effectiveness of issues that are important for global financial stability, including the policies adopted by the FSB and the financial standards developed by standard-setting institutions. Country assessments focus on the implementation and effectiveness of regulation, surveillance or other financial sector policies in an FSB member country. The report on Turkey's Peer Review, which was conducted by the FSB, was published on the FSB website on 19 November 2015.
b. Basel Committee on Banking Supervision (BCBS)
The BCBS, one of the committees under the BIS, is the main institution and the platform established to ensure international standards for banks all around the world. The aim is to contribute to financial stability by strengthening the supervision and regulation of banks.
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 Türkiye 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.
BCBS carries out the Regulatory Consistency Assessment Program (RCAP) in order to monitor the extent to which member jurisdictions adopt Basel III standards. Türkiye’s RCAP evaluation report was published on the BCBS official website on March 15, 2016.
c. International Monetary Fund (IMF)
The cooperation between Türkiye and the IMF and the World Bank continues in the form of technical support and contribution to the reports prepared by these institutions, in addition to the FSAPs.
d. Organization for Economic Cooperation and Development (OECD)
Türkiye is a founding member of the OECD, and the CBRT contributes to its work in several areas. In terms of financial stability, global financial developments are discussed, international cooperation is enhanced via the sharing of country experiences and improvement of coordination in policy implementation is sought in several committee meetings.
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 Türkiye. 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.