Payment systems in Turkey

June 2007

The Committee on Payment and Settlement Systems (CPSS) periodically publishes - under the aegis of the Bank for International Settlements (BIS) - reference works on payment systems in its member countries, widely known as Red Books. The CPSS has also invited the central banks of a number of other countries where important developments in payment systems are under way to prepare - in collaboration with its Secretariat at the BIS - separate volumes on their respective payment systems. The present volume, the second edition of the Red Book for Turkey, is a further step towards increasing our understanding of the way payment systems work in different countries.

Properly functioning payment systems enhance the stability of the financial system, reduce transaction costs in the economy, promote the efficient use of financial resources, improve financial market liquidity and facilitate the conduct of monetary policy. In recent years, issues relating to the economic efficiency and financial risks of all types of payment systems have come to the fore.

Central banks have a strong interest in promoting safety and improving efficiency in payment systems as part of their overall concern with financial stability. They play a key role in domestic payment system development and, in many cases, operate large-value payment systems. Central banks in many countries have been influential in improving public understanding of payment and settlement arrangements in their countries and public awareness of the various policy issues connected with such arrangements. This volume aims to portray the significant steps taken by the Central Bank of the Republic of Turkey in promoting safe and efficient payment systems in Turkey.

We hope that this volume will contribute to the general understanding and awareness of payment and securities settlement arrangements in Turkey, both domestically and internationally.

Timothy F Geithner, Chairman Durmuş Yılmaz, Governor
Committee on Payment and Settlement Systems Central Bank of the Republic of Turkey