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Retail Payment Systems

In the OIC Member Countries

98

Table 10, above, provides a general comparison of quantities of payment systems and

demonstrates the diversity of forms. The dominance of ATM cards in many, for example,

stands in sharp contrast to their scant use in Pakistan and especially Nigeria.

Both Tables 9 and 10 are elaborated on in Annex 2, where a more complete description of

governance practices are presented and further comparisons of usage of payment systems are

measured.

5.3 Legal and Regulatory Bodies

In general, there are independent institutions responsible for monetary policies in the country,

including retail payment system. In the case of Egypt and Nigeria, for example, the institutions

are the central bank. In the case of Ivory Coast, they have a “joint” or “cross-country” central

bank along with other West African countries. In the case of Turkey, the key institution is the

Banking Regulation and Supervisory Agency (BRSA/BDDK). All of those institutions have to set

the targets of the monetary policy, in agreement with the government or the president.

Those institutions are usually funded by the State Budget and/or fees or levies from parties

who conduct their businesses in the financial sector (i.e. banks, credit companies, insurance

companies, etc.). They have at least two main functions: supervision (oversight, inspection,

issue/revoke licenses, impose administrative sanction, etc.) and regulatory (implement laws,

establish rules and regulations, standards, etc.). The establishment and registration of payment

systems must follow the procedures and comply with central banks’ regulations.

These institutions are usually led by the Board of Directors that is collective and collegial in

practice, and appointed by Presidential Decree.