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Banking system in turkey

Banking system in turkey. PROF. Yaprak Gülcan. Main Objective of the Central Bank of The Republic of turkey (CBRT). Price Stability Article 4- (As amended by Law No. 4651 of April 25, 2001) "The primary objective of the Bank shall be to achieve and maintain price stability.

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Banking system in turkey

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  1. Bankingsystem in turkey PROF. Yaprak Gülcan

  2. MainObjective of theCentral Bank of TheRepublic of turkey (CBRT) Price Stability • Article 4- (As amended by Law No. 4651 of April 25, 2001) "The primary objective of the Bank shall be to achieve and maintain price stability. • The Bank shall determine on its own discretion the monetary policy that it shall implement and the monetary policy instruments that it is going to use in order to achieve and maintain price stability. • The Bank shall, provided that it shall not be in confliction with the objective of achieving and maintaining price stability, support the growth and employment policies of the Government.“ • Price stability denotes a level of sustainable inflation low enough that economic agents may ignore it in their investment, consumption and saving decisions. • The largest contribution that the Central Bank has made and can make to strong, stable and sustainable growth and increased employment is to achieve and maintain price stability.

  3. Inflation Targeting Regime In 2002, the Central Bank adopted a modern monetary policy strategy, namely the “inflation targeting regime”. During the implementation of the implicit inflation targeting regime of the 2002–2005 period, the Bank tried to lay the basis for the regime by ensuring the necessary pre-conditions, strengthened its technical and institutional infrastructure, developed estimation models and expanded its data set.  During this process, the Research Department was restructured as the Research and Monetary Policy Department and the Communications Department was set up to ensure effectiveness of communications policies. From 2005 onwards, the Monetary Policy Committee started to announce, in advance, its meeting dates as a yearly calendar, to increase predictability of policy decisions. The outcome of this entire process was the explicit inflation targeting regime that started to be implemented in 2006.

  4. Upon achieving some progress in the disinflation process, a two-stage monetary reform was launched in order to emphasize the Bank’s determination in its efforts, to enhance the credibility of the Turkish currency, and to eliminate various problems arising from high denomination. In the first stage, six zeros were removed from the Turkish lira, and banknotes of the New Turkish lira (YTL) and coins of the New kuruş (YKr) were put into circulation from 1 January 2005 onwards. On 1 January 2009, the second stage of the reform was launched by removing the prefix “New” used on the “New Turkish lira” and “New kuruş”, and Turkish lira banknotes and coins were put into circulation with new designs and sizes.

  5. NUMBER OF BANKS AND BRANCHES in theturkishbankingsystem

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