2016年-世界发展银行全球_Republic_of_Turkey_Financial_Sector_Assessment_Program___Assessment_of_Observance_of_the_CPMI_-_IOSCO_Principles_for_Financial_Market_Infrastructures_193页_2mb

Summary of the Financial Sector Assessment Program (FSAP) Report on the Republic of Turkey

Core Content

This report is part of the Financial Sector Assessment Program (FSAP) and evaluates the observance of the CPMI-IOSCO Principles for Financial Market Infrastructures (PFMIs) by the Republic of Turkey. The assessment focuses on the Electronic Funds Transfer (EFT) system and the Electronic Securities Transfer and Settlement System (ESTS), which are key components of the CBRT Payment and Securities Settlement System. It also considers the interlinkages of these systems with other financial market infrastructures (FMIs) such as Takasbank and Merkezi Kayit Kurulusu (MKK).

The report was prepared by the World Bank and IMF in April 2016, during a standards assessment mission. It includes an analysis of the legal and regulatory framework, governance, risk management, and operational procedures of the FMIs in Turkey. The findings are based on a combination of legal texts, internal documents, and discussions with regulatory bodies and market participants.

Main Authorities and Responsibilities

1. Central Bank of the Republic of Turkey (CBRT)

• Role: Central bank, regulator, and overseer of payment and securities settlement systems.
• Responsibilities:
  • Establish and operate payment and securities systems.
  • Enact regulations and oversee existing systems.
  • Monitor and revoke licenses in certain cases.
  • Impose administrative fines for non-compliance.
• Key departments:
  • Payment Systems Department (PSD), established in 2013, is responsible for payment and securities systems.
  • The PSD operates under the oversight of the CBRT and has four divisions: Payment Systems Operations, Regulation & Oversight, Payment Transactions, and Research & Development.

2. Capital Markets Board (CMB)

• Role: Independent regulator and overseer of the capital markets.
• Responsibilities:
  • Ensure the safe and efficient functioning of capital markets.
  • Oversee Central Securities Depositories (CSDs), Central Counterparties (CCPs), and Trade Repositories (TRs).
  • Regulate and supervise securities settlement systems and market infrastructures.
• Key functions:
  • Acts as a central counterparty (CCP) for derivatives on BIST.
  • Operates the Securities Lending and Borrowing (SLB) platform.
  • Recently licensed as a Trade Repository (TR) for OTC derivatives.

3. Banking Regulation and Supervision Authority (BRSA)

• Role: Sole authority for banking regulation and supervision.
• Responsibilities:
  • Regulate and supervise banks, financial holding companies, and non-bank e-money and payment institutions.
  • Ensure confidence and stability in the financial markets.
  • Provide effective operation of the credit market and protect depositors' rights.
• Regulatory powers:
  • Prepare secondary regulations for payment services.
  • Monitor and enforce compliance with payment laws.

Key Financial Market Infrastructures (FMIs)

1. EFT System (Electronic Funds Transfer)

• Function: RTGS system used for interbank proprietary transactions, including the settlement of government securities and central bank bills.
• Legal basis: Governed by the CBRT Law (No. 1211) and PSL (Law No. 6493).
• Governance: Operated by the CBRT, with the PSD responsible for oversight.
• Risk Management:
  • A risk management framework has been developed.
  • However, it is not yet subject to internal audit.
  • It is internally focused and does not fully account for external risks or linkages with other FMIs.
• Liquidity Risk:
  • Participants are exposed to liquidity risk due to transaction concentration near the end of the day.
• Default Management:
  • A default risk management framework exists but has not been comprehensively tested.
• Operational Risk:
  • A comprehensive framework is in place.
  • However, business continuity procedures do not fully consider operational risks from other FMIs.
• Tiered Participation:
  • Not acknowledged in the rules, but some tiered arrangements exist in practice.
• Recommendations:
  • Develop a more comprehensive risk management framework.
  • Conduct internal audits.
  • Incorporate external risk considerations.
  • Improve tiered participation arrangements.

2. ESTS System (Electronic Securities Transfer and Settlement System)

• Function: Acts as a Central Securities Depository (CSD) and Securities Settlement System (SSS) for government securities and central bank bills.
• Legal basis: Governed by the CBRT Law (No. 1211) and PSL (Law No. 6493).
• Governance: Operated by the CBRT, with the PSD overseeing it.
• Risk Management:
  • Shares the same risk management framework as the EFT system.
  • Liquidity risk and default risk are similar to EFT.
• Legal Risk:
  • Ambiguity exists in the sub-account structure of Takasbank for participants in money markets and the government securities secondary market.
  • This could lead to inadequate legal certainty for protecting securities holdings.
• Recommendations:
  • Clarify legal risk provisions.
  • Enhance legal certainty for sub-account holders.
  • Strengthen risk management framework and compliance with PFMIs.

Responsibilities of Authorities

1. Responsibility A: Regulation, Supervision, and Oversight of FMIs

• Observed: Broadly observed.
• Key points:
  • CBRT and CMB have clear roles in regulating and overseeing FMIs.
  • The CBRT Payment Systems Department (PSD) is the primary authority for payment systems.
  • The CMB oversees securities settlement systems, CSDs, CCPs, and TRs.

2. Responsibility B: Regulatory, Supervisory, and Oversight Powers and Resources

• Observed: Broadly observed.
• Key points:
  • CBRT and CMB have defined regulatory powers.
  • However, the CMB lacks dedicated organization arrangements and resources for its oversight activities.

3. Responsibility C: Disclosure of Policies with Respect to FMIs

• Observed: Observed.
• Key points:
  • CBRT has published objectives and policies on its website.
  • CMB is in the process of issuing regulations for TRs.

4. Responsibility D: Application of the Principles for FMIs

• Observed: Observed.
• Key points:
  • The CBRT and CMB have implemented the PFMIs.
  • However, compliance needs improvement in some areas.

5. Responsibility E: Cooperation with Other Authorities

• Observed: Observed.
• Key points:
  • CBRT and CMB are cooperating with other regulatory bodies.
  • There is potential for better coordination between authorities.

Key Findings and Recommendations

Findings

• The EFT and ESTS systems are integrated, sharing the same operating rules, governance arrangements, risk management framework, access criteria, and system interfaces.
• Liquidity risk is a concern in the EFT system due to transaction concentration.
• Default risk management is in place but not tested.
• Operational risk management is comprehensive but does not fully account for external risks.
• Tiered participation is not acknowledged in the rules, though it exists in practice.
• Legal risk is ambiguous, particularly in relation to Takasbank's sub-account structure.

Recommendations

• EFT System:
  • Develop a comprehensive risk management framework.
  • Conduct internal audits.
  • Incorporate external risk considerations.
  • Improve tiered participation arrangements.
• ESTS System:
  • Clarify legal risk provisions.
  • Enhance legal certainty for sub-account holders.
  • Strengthen risk management framework and compliance with PFMIs.
• Authorities:
  • The CMB should establish dedicated organization arrangements and resources for oversight.
  • The CBRT should ensure the risk management framework is inclusive of external risks and linkages with other FMIs.

Conclusion

The report concludes that the EFT and ESTS systems in Turkey broadly observe the PFMIs, but compliance needs improvement in several areas. The legal and regulatory framework is generally sound, but ambiguities exist that may affect legal certainty. The CBRT and CMB have clear responsibilities, but resource allocation and cooperation between them could be enhanced. Overall, the assessment highlights the need for more robust risk management, legal clarity, and institutional coordination to ensure the safe and efficient functioning of the financial market infrastructures in Turkey.