Payment Systems in Turkey

The Committee on Payment and Settlement Systems (CPSS) of the central banks of the Group of Ten countries periodically publishes - under the aegis of the Bank for International Settlements - reference works on payment systems in various countries widely known as Red Books. In December 1993 it published the fourth edition of the Red Book covering all the G10 countries, and it has since produced yearly statistical updates for these countries. The CPSS has also invited the central banks of a number of countries where important developments in payment systems are under way to publish - in collaboration with its Secretariat at the Bank for International Settlements - separate volumes on their respective payment systems. The present volume, the first edition of the Red Book for Turkey, is a further step towards increasing our understanding of the way payment systems work in different countries.

Central banks have a strong interest in promoting safety and improving efficiency in payment systems as part of their overall concern with financial stability. Well-functioning payment systems enhance the stability of the financial system, lower transaction costs in the economy, promote the efficient use of financial resources, improve financial market liquidity and facilitate the conduct of monetary policy.

Many central banks have been influential in improving public understanding of the payment and settlement arrangements in their countries. They play a key role in domestic payment system development and, in many cases, operate large-value payment systems. The Central Bank of the Republic of Turkey has made a major contribution to modernising the payment and settlement infrastructure in Turkey. It continues to undertake major projects to upgrade its services with a view to providing secure, reliable and efficient interbank payment systems.

In recent years, issues relating to the economic efficiency and financial risks of all types of payment systems have assumed greater importance. We hope this volume will contribute to the general understanding and awareness of payment systems in Turkey, both domestically and internationally.