Türkiye Cumhuriyet Merkez Bankası (CBRT)

Overview

The Central Bank of the Republic of Turkey (Türkiye Cumhuriyet Merkez Bankası - TCMB/CBRT) is the central monetary authority of the Turkish Republic. The CBRT was established as a joint-stock company on June 11, 1930, and commenced operations on October 3, 1931.

Current Governor: Fatih Karahan (as of 2026)

The CBRT is responsible for:

• Conducting monetary and exchange rate policy

• Managing international reserves (gold and foreign currencies)

• Printing and issuing banknotes

• Establishing, maintaining, and regulating payment systems

• Price stability and inflation targeting

Basic Identity

Classification

Inclusion Justification

What This Entity Oversees

Central Bank of Turkey

Macroprudential Framework:

• Systemic risk monitoring

• Coordination with BDDK on banking stability

• Capital adequacy and liquidity requirements

• Countercyclical capital buffers

Banking System Oversight:

• Coordination with Banking Regulation and Supervision Agency (BDDK)

• Payment system stability monitoring

• Liquidity provision to banking system

• Lender of last resort function

Crisis Management:

• Emergency liquidity assistance procedures

• Stress testing frameworks

• Contingency planning with financial authorities

Anti-Money Laundering Framework:

The CBRT is a leading regulatory body in Turkey dealing with AML compliance in payment systems and electronic money institutions.

Key Responsibilities:

• Supervision of AML/CFT compliance in payment systems

• Electronic money institution oversight

• Transaction monitoring and reporting requirements

• Know Your Customer (KYC) standards enforcement

• Suspicious transaction reporting to MASAK

Regulatory Coordination:

• Primary AML authority: Financial Crimes Investigation Board (MASAK)

• CBRT focuses on payment system participants

• Coordination with BDDK on banking sector AML

• Cooperation with CMB on securities market AML

Cryptocurrency Regulatory Stance:

• 2021 rules: Outlawed use of cryptocurrencies as form of payment

• AML/CFT standards applied to crypto exchanges and platforms

• Coordination with CMB on crypto asset regulation (Law 7518/2024)

International Compliance:

• FATF Mutual Evaluation Report (2019) compliance activities

• Enhanced follow-up process with FATF (2021-2023)

• Participation in international AML/CFT standards setting

International Participation

Multilateral Memberships:

• BIS (Bank for International Settlements): Full member

• Committee on Payments and Market Infrastructures (CPMI)

• Basel Committee on Banking Supervision (BCBS) observer

• G20: Turkey as full member

• Financial Stability Board (FSB) participation

• Central bank coordination through G20 Finance Ministers and Central Bank Governors meetings

• IMF: Article VIII acceptance

• World Bank: Member institution

Regional Cooperation:

• Central Asian regional central bank coordination

• Middle East and North Africa (MENA) regional forums

• Bilateral swap agreements with regional partners

Standard-Setting Participation:

• ISO 20022 adoption for payment systems (compatibility with international standards)

• CPMI/IOSCO guidance implementation on payment system oversight

• Basel III regulatory standards compliance

Regulatory Powers

Compliance Enforcement:

• Sanctions for non-compliance with payment system regulations

• Fines for AML/CFT violations

• License revocation procedures

• Administrative penalties

Supervisory Tools:

• Regular inspections of payment system participants

• On-site and off-site examinations

• Regulatory reporting requirements

• Enforcement of capital and liquidity standards

Recent Enforcement Actions:

• Enforcement against unauthorized cryptocurrency payment usage

• Sanctions on financial institutions for AML/CFT non-compliance

• Regulatory actions against illegal electronic money providers

Regulatory Role and Function

Legal Foundation

Primary Legislation:

• Law on the Central Bank of the Republic of Turkey No. 1715 (enacted June 11, 1930)

• Law No. 1211 (establishing the monetary policy framework)

• Banking Law No. 5411 (coordination with banking sector)

Constitutional Status:

The CBRT operates as an independent public institution with legal personality, established to support the country's economic development and maintain financial system stability.

Statutory Objectives:

• Primary objective: achieve and maintain price stability (explicitly defined in 2001 amendments)

• Secondary objective: support the government's economic policies without compromising price stability

• Maintain the integrity and efficiency of the payment and settlement systems

Licensing and Authorization Relevance

The Türkiye Cumhuriyet Merkez Bankası (CBRT) is a key licensing authority in Turkey's financial system:

The licensing process typically involves assessment of capital adequacy, fitness and propriety of management, business plan viability, AML/CFT compliance frameworks, and IT systems readiness.

Payments and Money Movement Relevance

Inflation Targeting Framework:

The CBRT has followed a full-fledged inflation targeting regime since 2006. The framework includes:

• Target inflation band (set by government on recommendation of CBRT)

• Policy rate (repo rate) as primary policy instrument

• Transparent communication of monetary policy decisions

• Regular inflation reports and forecasts

Policy Tools:

• Open market operations (OMO)

• Standing facilities

• Reserve requirements

• Macroprudential policy instruments

2026 Context:

As of early 2026, the CBRT has been actively managing inflation through its monetary policy stance, with Governor Fatih Karahan providing regular assessments on inflation outlook and economic conditions.

The CBRT is the sole regulator, owner, and operator of the core payment systems infrastructure in Turkey, managing settlement directly in central bank money.

Electronic Fund Transfer System (EFT)

• Establishment: First generation launched April 1992

• Current Version: Third generation operational since 2013

• Function: Real-time transfer and real-time gross settlement (RTGS) of Turkish Lira interbank payments

• Operation: 24/7 availability with instant settlement capability

• Participants: All CBRT-authorized credit institutions

FAST (Instant and Continuous Transfer of Funds System)

• Launch Date: January 2021

• Operation: 24/7 real-time payments infrastructure

• Settlement Method: Real-Time Gross Settlement (RTGS)

• Transaction Speed: Executed within seconds with instant availability

• Coverage: 100% of the Turkish banking system

• Regulation: Operates under sole authority of the Central Bank

• Features:

• Eliminates deferred net settlement risk

• Individual transaction settlement in real time

• Supports both credit transfers and direct debits

• Mobile-enabled through integration with banking apps

Troy Card Network

• Establishment: 2015

• Founding: Consortium of 13 major Turkish banks

• Operator: Interbank Card Center (BKM) under CBRT oversight

• Function: Domestic card scheme for debit and credit transactions

• Integration: Interoperates with CBRT-managed payment infrastructure

Supporting Infrastructure

BKM (Interbank Card Center) - CBRT Coordination:

• BKM Express (digital wallet)

• Local 3DS Authentication and Authorisation System (3DS ACS)

• Troy scheme operations

• Clearing and settlement services

Exchange Rate Regime:

• Floating exchange rate system (free-floating Turkish Lira)

• CBRT intervention policy: managed floats for financial stability

• Forward FX market operations by CBRT

Reserve Management:

• Maintenance of foreign exchange reserves in multiple currencies

• Gold reserve holdings

• SDR allocations

• Foreign government securities

International Cooperation:

• Bilateral swap agreements with other central banks

• Participation in international reserve management forums

• Coordination with IMF and World Bank on policy matters

Payment Systems Governed or Overseen

The CBRT (Central Bank of Turkey / Türkiye Cumhuriyet Merkez Bankası) operates and oversees Turkey's comprehensive payment systems infrastructure supporting both high-value interbank transfers and real-time retail payments.

EFT (Electronic Fund Transfer) System - RTGS

Type: Real-Time Gross Settlement (RTGS) system for interbank payments

Current Generation: Third generation developed in-house by CBRT

Launch: Generation 3 system began operation in 2013

Function: Provides real-time transfer and real-time gross settlement of Turkish Lira interbank payments

Characteristics:

• Real-time settlement for large-value transactions

• Final payment settlement through gross settlement mechanism

• Turkish Lira (TRY) denominated interbank payments

• Advanced infrastructure supporting modern payment processing

FAST (Fonların Anlık ve Sürekli Transferi) - Instant and Continuous Transfer System

Type: Instant Payments Platform for real-time retail transfers

Pilot Launch: December 18, 2020 (pilot run)

Full Service Launch: January 8, 2021

Function: Immediate payment system allowing customers to send payment orders 24/7, with payments executed within seconds and funds instantly available in recipient accounts.

Key Features:

• 24/7 operation and availability

• Instant settlement (within seconds)

• Immediate fund availability to recipient

• Open to both banks and licensed non-bank financial institutions

• Payment initiation through multiple channels

2024 Performance Metrics:

• Registered users: 15.5 million+

• Daily transaction volume: 3.5 million+ transactions per day

• Robust growth trajectory in consumer and business adoption

Fintech and Non-Bank Participation:

FAST is open to both banks and licensed non-bank financial institutions, allowing fintechs to participate directly in the same payment network as traditional banks

Overlay Services (via BKM):

Third-party payment service providers have developed overlay services including:

• QR code payment functionality

• Request-to-Pay features

• Escrow payment services

• Enhanced merchant payment options

Source: TCMB - Electronic Fund Transfer System and FAST

BKM (Interbank Card Center) and Troy Card Scheme

Type: Card scheme operator and payment infrastructure provider

Function: Manages interbank card switching and payment processing

Domestic Card Scheme: Troy - Turkey's domestic card payment brand

Services: Card issuing, merchant acquiring, payment processing, and scheme operations

Payment Systems Summary Table

Licensed Fintech and Payment Institution Ecosystem

Licensed Financial Technology and Payment Providers

As of December 2024, 89 companies have received e-money or payment institution licenses from the CBRT:

Licensed Fintech Companies Operating in Turkey (selected):

• Papara – Digital wallet, P2P payments, bill payment

• İyzico – Payment processing and merchant acquiring

• Param – Digital wallet and payment services

• ininal – Digital wallet and instant payments

• [Additional 85+ licensed entities]

Fintech Ecosystem Size (2024):

• 283 Payment Technology Startups

• 120 Banking Technology Companies

• 107 Blockchain and Crypto Asset Firms

• Total ecosystem: 510+ fintech/banking tech companies

2024 Funding:

• $194 million raised across 32 deals

• Record funding year for Turkish fintech sector

Source: Why Turkey's Fintechs Grow With Banks, Not Against Them

Digital Turkish Lira (CBDC) Development

Digital Turkish Lira Project

Project Timeline:

• 2020: Initial CBDC research and concept development

• 2022: Establishment of required technical environments and infrastructure

• Late 2022: First successful payment transactions executed in pilot tests

• 2023: Continued pilot testing and refinement

• 2024-2027: Phase Two implementation at full scale

Current Status (2024-2025):

CBRT executive directors have confirmed "Phase Two has started at full steam" with significant progress on digital infrastructure.

Future Implementation (2027):

By 2027, Turkish citizens may be able to use a government-backed digital wallet for:

• Bill payment

• Retail grocery and consumer goods purchases

• General payment transactions

• Cross-border payments

CBRT Vision:

The CBRT believes the digital Turkish Lira will be the future of payments in Turkey and the broader region.

Source: Central Bank of Turkey Successfully Tests Payment Transactions Using Digital Lira, Digital Turkish Lira: Benefits and Opportunities

Sources: TCMB Payment Systems, Turkey's FAST System, Turkey's Payment Rails

Relationship to Other Regulators

The Türkiye Cumhuriyet Merkez Bankası (CBRT) operates within Turkey's broader financial regulatory architecture and maintains relationships with:

Geography and Jurisdiction Notes

Important Departments and Divisions

Key Public Resources

Executive Structure:

• Governor: Fatih Karahan

• Board of Directors: Monetary Policy Committee

• Key Departments:

• Payment Systems Department

• Banking and Financial System Stability Department

• AML/CFT Compliance Department

• International Relations Division

Contact Information:

Headquarters:

Türkiye Cumhuriyet Merkez Bankası

Ulus Mahallesi, Hacı Bayram Caddesi No:37

06050 Ankara, Türkiye

Website: https://www.tcmb.gov.tr/wps/wcm/connect/en/tcmb+en

Key Department Contacts:

• Payment Systems Operations: [email protected]

• General Inquiries: https://www.tcmb.gov.tr (contact form available)

• Press Relations: [email protected]

Regulatory Reporting Portal:

• CBRT-regulated institutions access reporting systems via secure portal

• Payment system participant interface: https://eftemkt.tcmb.gov.tr

Notes on Naming and Language