Retail Payment Systems
In the OIC Member Countries
81
4.7 Turkey
Highlights:
• Electronic payments in Turkey grew in 2014 in both volume and current value, despite the
slowdown in the economy. Growth was fuelled by the growing number of cards in
circulation, the higher number of ATMs and PoS terminals, as well as the benefits and
privileges offered to credit card and debit card holders by card issuers.
• Private banks increasingly invest in developing and advertising innovative products to
encourage consumers to use their credit and debit cards. State-owned banks, however,
accounted for a high percentage of debit and ATM cards in circulation, due to their role in
distributing salaries to government employees and pension payments.
Introduction
Driven by private consumption and supported by a stable macroeconomic policy framework,
the Turkish economy has grown significantly since the country emerged from the 2001
financial crisis. Between 2002 and 2008, Turkey’s GDP experienced an annual average growth
of 5.8%. Due to global turmoil in 2009, Turkey’s GDP declined to US$614 bn, but rebounded in
2010, reaching US$729 bn and making Turkey the 16th largest economy in the world (PwC,
2011).
Restructuring of the banking sector, monetary discipline based on the independence of the
Central Bank and a floating exchange rate regime, tight fiscal policy, public administration
reform, and the EU accession process with reform packages enacted by the parliament all
contributed to the transformation of the country after the 2001 crisis. Established in 1932, the
Central Bank of the Republic of Turkey is an autonomous institution operating in accordance
with the Law on the Central Bank of the Republic of Turkey of 1970 and its amendments.
Since the 2001 crisis the economy has been buoyant, inflation is in single figures and the
economic outlook is promising. Public debt is below 50%. These fundamentals put Turkish
macro-economic outlook in a good stance among the OIC Member States as well as its EU
member neighbours.
General Banking and Payment Landscape
Banking and payment system oversight is primarily provided by two institutions: the Central
Bank of the Republic of Turkey (CBRT) and Banking Regulation and Supervision Agency
(BRSA). The CBRT is responsible for monetary policy and the exchange rate regime in order to
achieve macro economic stability as well as in management and supervision of payment and
settlement systems. The BRSA supervises all banks, financial holding companies, leasing