Relations with the Financial Safety Net
Financial Sector Commission
With the Article 99 of the Banking Law joined by the representatives of the BRSA, the Ministry of Finance, and the Undersecretariat of Treasury, the CBRT, the CMB, the SDIF, the Competition Authority, the Ministry of Development, the IAB, the BIST, the DE and associations of institutions, the Financial Sector Commission was established. The commission gathers at least twice a year to ensure trust, stability and growth in financial markets, secures exchange of information, cooperation and coordination among organizations, suggests joint policy proposals and expresses views on the future of finance.
Another platform specified in the Banking Law is the Coordination Committee which was established under the Article 100 in order to ensure exchange of information on the general status of the banking industry, measures to be taken following the inspection of credit institutions, and data on credit institutions to serve as a basis for the calculation of risk-based insurance premiums. Gathering Chairmen and Vice Chairmen of the BRSA and the SDIF, the Coordination Committee convenes at least once in quarterly periods.
Financial Stability Committee
Institutions and organizations forming the Financial Security Net cooperate with each other and exchange information via working platforms established under the relevant laws. The first one of such platforms is the “Financial Stability Committee” established in accordance with the supplementary Article 4 of the “Law on Structures and Duties of the Undersecretariat of Treasury” dated December 9, 1994 and No.4059 to jointly assess the systemic risk by the member institutions of the Financial Safety Net, and identify precautions to be taken. The supplementary Article 4 of the Law on Structures and Duties of the Undersecretariat of Treasury dated December 9, 1994 and No.4 was amended as “in case of a negative development that affects the entire financial system and of the determination of such case by the Financial Stability Committee, the Council of Ministers is entitled to take precautions and all the respective institutions and organizations are entitled and liable to implement such precautions effective immediately” in accordance with the Article 12.09.1994 of the “Capital Markets Law No. 145” put into force and published in the Official Gazette on December 30, 2012 and No.28513.
Systemic Risk Assessment Group
In line with the Protocol on the Financial Stability Committee Systemic Risk Assessment Group dated November 10.30.2012, the Systemic Risk Assessment Group (SRAG) was established by the Undersecretariat of Treasury, the BRSA, the CBRT, the CMB and the SDIF.