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
| Field | Value |
|---|---|
| Official Name (English) | Türkiye Cumhuriyet Merkez Bankası (CBRT) |
| Official Name (Local Language) | Türkiye Cumhuriyet Merkez Bankası (CBRT) |
| Acronym | CBRT |
| Country | Turkey |
| Jurisdiction Level | National |
| Official Website | https://www.tcmb.gov.tr/wps/wcm/connect/en/tcmb+en |
| Official Website Language(s) | Turkish (primary), English (partial) |
| Headquarters | Turkey |
| Year Established | 2006 |
| Current Status | Active |
Classification
| Field | Value |
|---|---|
| Entity Type | Central Bank |
| Control Layer | Layer 1 — Sovereign/Government Regulator |
| Legal Authority Level | Binding |
| Jurisdiction Level | National |
| Scope of Power | Licensing, Supervision, Enforcement, Rulemaking |
Inclusion Justification
| Field | Value |
|---|---|
| Why This Entity Is Included | Primary monetary authority with statutory powers over banking supervision, monetary policy, payment systems, and financial stability |
| Type of Influence | Direct |
| Exclusion Risk | Removes the foundational monetary and banking regulatory authority from the directory, making the jurisdiction's financial control structure incomprehensible |
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
| Role | Description |
|---|---|
| Primary Role | Monetary policy formulation and implementation; banking system supervision |
| Licensing Role | Licenses and authorizes banking institutions and payment service providers |
| Supervisory Role | Prudential supervision of banks and financial institutions |
| Enforcement Role | Enforcement of banking laws, regulations, and prudential standards |
| Payment Systems Oversight Role | Operation and oversight of national payment and settlement systems |
| AML / CFT Role | AML/CFT supervisory authority for banking sector |
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:
| License Type | Description |
|---|---|
| Banking License | Authorization to conduct deposit-taking and lending activities |
| Payment Service Provider License | Authorization to provide payment services and operate payment systems |
| Foreign Exchange Dealer License | Authorization to conduct foreign exchange dealing and brokerage |
| Bureaux de Change License | Authorization to operate money changing services |
| Money Transfer License | Authorization to provide money transfer and remittance services |
| Electronic Money Issuer License | Authorization to issue electronic money instruments |
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
| System Name | Type | Launch | Settlement Speed | Availability |
|---|---|---|---|---|
| EFT | RTGS | 2013 (Gen 3) | Real-time | Business hours |
| FAST | Instant Payments | January 2021 | Seconds | 24/7 |
| Troy/BKM | Card Scheme | [Established] | Real-time | Merchant acquiring |
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:
| Counterpart Type | Relationship |
|---|---|
| Ministry of Finance / Treasury | Fiscal-monetary policy coordination; government banker functions |
| Financial Intelligence Unit (FIU) | AML/CFT information sharing and suspicious transaction reporting |
| Securities Regulator | Coordination on financial stability and systemic risk; shared oversight of financial conglomerates |
| Insurance Regulator | Coordination on prudential standards for insurance sector where applicable |
| Deposit Insurance Corporation | Coordination on bank resolution and depositor protection |
| International Organizations | Cooperation with IMF, World Bank, BIS, and regional central bank networks |
Geography and Jurisdiction Notes
| Field | Value |
|---|---|
| Applies Nationwide | Yes |
| Applies at State or Sub-National Level Only | No |
| Cross-Border or Regional Reach | No |
| Special Territorial Notes | National jurisdiction within Turkey |
Important Departments and Divisions
| Division / Department | Primary Function |
|---|---|
| Banking Supervision Department | Prudential supervision of banks and deposit-taking institutions |
| Monetary Policy Department | Formulation and implementation of monetary policy |
| Payment Systems Department | Operation and oversight of payment infrastructure |
| Financial Stability Department | Systemic risk monitoring and macroprudential policy |
| Foreign Exchange Department | FX reserves management and exchange rate policy |
| AML/CFT Compliance Unit | Anti-money laundering supervision and enforcement |
| Research and Statistics Department | Economic research and data collection |
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
| Field | Value |
|---|---|
| Preferred English Rendering | Türkiye Cumhuriyet Merkez Bankası (CBRT) |
| Official Local-Language Rendering | Türkiye Cumhuriyet Merkez Bankası (CBRT) |
| Primary Language | Turkish |
| English Availability | Partial |
| Official Website Language(s) | Turkish (primary), English (partial) |