Investing in Turkey: Dr Cigderm Kogar, Financial Regulation in Turkey- Moving Towards Convergence
•
1 gefällt mir•1,103 views
Dr Cigdem Kogar Chief Representative Central Bank of Turkey Investing in Turkey and the Growing Economy Half-day MEA Conference Wednesday 18th March
Empfohlen
Empfohlen
Weitere ähnliche Inhalte
Was ist angesagt?
Was ist angesagt? (20)
Andere mochten auch
Ähnlich wie Investing in Turkey: Dr Cigderm Kogar, Financial Regulation in Turkey- Moving Towards Convergence
Ähnlich wie Investing in Turkey: Dr Cigderm Kogar, Financial Regulation in Turkey- Moving Towards Convergence (20)
Mehr von The Middle East Association
Mehr von The Middle East Association (10)
Kürzlich hochgeladen
Kürzlich hochgeladen (20)
Investing in Turkey: Dr Cigderm Kogar, Financial Regulation in Turkey- Moving Towards Convergence
- 1. Keynote Address “Investing in Turkey and the Growing Economy“ Financial Regulation in Turkey: Moving Towards Convergence with Sound Macroeconomic Policies Dr. Cigdem Kogar Chief Representative of Central Bank of Turkey Economic Counsellor to the Turkish Embassy in London Middle East Association 18 March 2015, London
- 2. Content 2 Macrofinancial Environment: Key Points Macroprudential Policies & Sound Financial Sector Global Financial Regulatory Framework & Turkey G20 Presidency of Turkey: Key Issues & Priorities Prospects for the Turkish Economy : 2015-2017
- 3. Content 3 Macrofinancial Environment: Key Points Macroprudential Policies & Sound Financial Sector Global Financial Regulatory Framework & Turkey G20 Presidency of Turkey: Key Issues & Priorities Prospects for the Turkish Economy : 2015-2017
- 4. Key Points I 4 Turkey succesfully immuned from the long lasting global financial crisis No penny spent for bank capitalisation, no bailout High and sustainable growh performance Single digit inflation towards to 5 percent target Effective management of volatile capital flows Rebalancing of the economy and improvement in current account deficit
- 5. Key Points II 5 Thanks to Good restructuring of the regulatory framework and Rehabilitation of the banking sector after 2001 crisis Decisive and timely actions of Financial Stability Committee Effective implementation & coordination of macroprudential policies Timely and promptly action of Central Bank of Turkey Fiscal discipline
- 6. Key Points III 6 Both high inflation and deflation are detrimental to growth The best conribution to growth from a central bank would be to maintain price stability Reforms in human capital, labor market, technology, innovation and physical infrastructure are going to boost the growth potential in Turkey.
- 7. 7
- 8. 8
- 9. 9
- 10. Content 10 Macrofinancial Environment: Key Points Macroprudential Policies & Sound Financial Sector Global Financial Regulatory Framework & Turkey G20 Presendency of Turkey: Key Issues & Priorities Prospects for the Turkish Economy : 2015-2017
- 11. Authorities Responsible from Financial Stability 11 Relevant Authority Area of Responsibility Central Bank of the Republic of Turkey (CBRT) Implementation of monetary policy and exchange rate regime to achieve price stability and financial stability, management and supervision of payment and settlement systems Banking Regulation and Supervision Agency (BRSA) Supervision & regulation of all banks, financial holding companies, leasing , factoring and consumer finance companies as well as setting code of conduct Undersecretariat of Treasury Public finance, implementation of fiscal policy, and supervision and regulation of insurance companies Capital Markets Board Supervision and regulation of securities brokers Savings Deposit Insurance Fund Protecting the rights and interests of deposit holders, and resolution of banks
- 13. Macroprudential Policy 13 Instruments of BRSA Capital Adequacy • Capital buffer target • Divident restriction policy • Higher risk-weight for consumer loans and credit cards General Provisions • Higher prv for retail loans • Lower prv for SMEs & export loans Lending Policy • Guidance on lending policy • Limits to credit card • Ban on consumer FX lending (Treasury) • Limitation on maturity for consumer loans & credit cards LTV & DTI ratios Instruments of CBRT Reserve Requirements • Maturity Based & Currency Based • Leverage-Based Reserve Option Mechanism (ROM) Renumeration Policy of Reserve Requirements Cyclical Instruments: Policy rate, Interest rate corridor, TL&FX Liquidity Management
- 15. 15 Increasing asset size as per cent of GDP, but still room to grow Strong capital adequacy High asset quality Sustainable profitability High lending appetitate Good risk management policies Relying still largely on retail funding Well-defined regulatory framework Strong safety net and good coordination between authorities More resilient to shocks Overview of the Banking Sector
- 16. Structural Indicators 16 0 5 10 15 20 China Russia India S.Africa Poland Mexico Turkey Brazil Indonesia Capital Adequacy Ratio NPL Ratio Asset & Liability CompositionAsset Size
- 17. Profitability & Roll Over Ratios 17 Source: IMF FSI, as of 2014 Q2
- 18. 18 30/51 banks have a foreign share 30/51 banks • Subsidiary (21) • Branch (6) • Investment & development banks (3) 25 % of the asset size • 46 % including stock exchange From 21 countries all over the continents • China, France, Germany, Greece, Iran, Israel, Italy, Japan, Kazakhstan, Kuweit, Libya, Lebanon, Netherland, Quatar, Russia, Pakisthan, Saudi Arabia, Scotland, Spain, UK, USA Foreign Bank Participation in Turkey
- 19. Turkish Banks Outreach 19 Turkish banks operate wide range of 33 countries 155 number of cross-border financial institutions • 31 banks • 26 non-bank financial institutions • 87 branches • 11 Representative Office
- 20. Content 20 Macrofinancial Environment Macroprudential Policies & Sound Financial Sector Global Financial Regulatory Framework & Turkey G20 Presidency of Turkey: Key Issues & Priorities Prospects for the Turkish Economy : 2015-2017
- 21. Convergence to Global Financial Regulatory Framework 21 Since 2009, Turkey is the Member of G20 (Turkish Presidency in 2015) Financial Stability Board (FSB) BIS Basel Committee The Islamic Financial Services Board (IFSB) Shareholder of The International Islamic Liquidity Management Corporation (IILM) (2010) Chair of the FSB MENA Region Consultative Group (2013-2015)
- 22. Basel III Framework 22 Capital Increase in the quality and level of capital Common equity capital ratio (CET 1) 4.5%; Tier 1 capital ratio 6% ; Total capital 8% Capital conservation buffer (CCB): 2.5% CET 1, CET 1 + CCB = 7%; Constraint on a bank’s discretionary distributions will be imposed when banks fall into the buffer range. Countercyclical capital buffer: 0%- 2.5% CET1, which is imposed when authorities judge credit growth is resulting in an unacceptable build up of systematic risk. Leverage Serve as a backstop to the risk-based capital requirement and contain system wide build up of leverage Tier 1 capital / Total on and off-balance sheet exposures≥ % 3 Liquidity Liquidity Coverage Ratio (LCR) LCR: (Stock of high quality liquid assets/ Total net cash outflows over the next 30 calendar days) ≥ 100 Net stable funding ratio (NSFR) NSFR : ( available amount of stable funding/ Required amount of stable funding) ≥ 100 Risk Coverage Securitisation: strengthens the capital treatment for certain complex securitisations. Trading book: Significantly higher capital for trading and derivatives activities, as well as complex securitisations held in the trading book. Counterparty credit risk: More stringent requirements for measuring exposure; capital incentives for banks to use central counterparties for derivatives; and higher capital for inter-financial sector exposures. Banks’ exposures to central counterparties: capital requirements for trade exposures and default fund exposures to a CCP.
- 23. Other Regulatory Issues 23 under G20... Too Big to Fail • G-SIBs • D-SIBs • NBNI G-SIFIs • G-SIIs OTC Derivatives Market Reform Shadow Banking under IFSB...
- 24. 24 Convergence of Turkish Financial Regulations to International Regulations
- 25. Covergence of Turkey to International Financial Regulatons I 25 Capital Regulations Effective Regulation on equity’s of banks January 2014 Regulation on the measurement and assessment of the banks’ capital adequacy ratio January 2014 Regulation on capital conservation and countercyclical capital buffers January 2014 Ratios: phase in 2016- 2019 Leverage Regulation Regulation on the measurement and assessment of the banks’ leverage ratio January 2014 Ratios: January 2015 Liquidity Regulation Regulation on liquidity adequacy ratio of the banks January 2014 Ratios: January 2015
- 26. Convergence of Turkey to International Financial Regulations II 26 Too Big to Fail Status Peer Review on Resolution Regimes 2015 OTC Derivatives Reforms Foundation of a TR in Turkey exp. 2015 Legislation on CCP clearing of OTC derivatives published 2014 Regulations for CCP clearing of OTC derivatives exp.2015 Capital requirements for non centrally cleared derivatives exp.2015
- 27. Content 27 Macrofinancial Environment: Key Points Macroprudential Policies & Sound Financial Sector Global Financial Regulatory Framework & Turkey G20 Presidency of Turkey: Key Issues & Priorities Prospects for the Turkish Economy : 2015-2017
- 28. Turkey’s Priorities for its G20 Presidency 28 Three I’s of Turkish Presidency Inclusiveness : • Low-income developing countries • SMEs • International financial architecture – IMF Quota Reform Investment : • More emphasis to infrastructure investments • Developing affordable, feasible, risk sharing PPP models Implementation : policies including financial regulation, international tax, growth strategies and international financial architecture
- 29. …Regarding Financial Regulations in G20 29 Finalize the new regulatory framework in line with the agreed financial regulation agenda Ensure timely, fully and consistently implementation of the new regulatory framework Establish mechanisms for effective cross-border cooperation Analyze the regulatory outcomes and effects of the reforms Remain alert to new and evolving risks in the global financial system especially that may be arisen from outside the traditional banking system Draw attention corporate sector’s financing structure. In this regard, examine the factors that shape the liability structure of corporates focusing on its implications for financial stability.
- 30. FSB MENA Region Consultative Group (MENA-RCG) 30 Established in 2011 for 6 regional consultative groups, 6 meetings held so far Aim: to bring together financial authorities from FSB member and non-member countries to exchange views on vulnerabilities affecting financial systems and on initiatives to promote financial stability Members of MENA-RCG: Algeria, Bahrain, Egypt, Jordan, Kuwait, Lebanon, Morocco, Oman, Qatar, Saudi Arabia, Tunisia, Turkey and United Arab Emirates Chaired by Saudi Arabian Monetary Agency & Central Bank of Turkey bi-annual basis, co-chaired by non-members Central Bank of Kuwait & Central Bank of Lebanon
- 31. Content 31 Macrofinancial Environment Macroprudential Policies & Sound Financial Sector Global Regulatory Framework & Turkey G20 Presidency of Turkey: Key Issues & Priorities Prospects for the Turkish Economy : 2015-2017
- 32. 2023 Vision 32 Becoming one of the world's 10 largest economies by 2013 • gross domestic product (GDP) to $2 trillion • national income per capita to $25,000 • boosting the country's exports to $500 bln. Three major factors behind Turkey's economic success: Clarity Consistency Commitment
- 33. High and Stable Growth Strategy of Turkey 33
- 34. Transformation Programs for Innovative Production Structure & Sustainable Growth 34
- 35. Turkey : Medium Term Plan 2015-2017 35
- 36. 36
- 37. Dr. Cigdem Kogar Chief Representative of Central Bank of Turkey Economic Counsellor to the Turkish Embassy in London Middle East Association 18 March 2015, London Keynote Address “Investing in Turkey and the Growing Economy“ Financial Regulation in Turkey: Moving Towards Convergence with Sound Macroeconomic Policies