Functions Of The Bank
Pursuant to the provisions of the Central Bank Law No: 1211, the Bank carries out money and credit policy in accordance with the needs of the economy and so as to maintain price stability. The Bank takes necessary measures to protect the domestic and international value of the national currency and regulates its volume and circulation. It also extends credits to banks and conducts open market operations in order to regulate money supply and liquidity in the economy.
Moreover, the Bank determines the terms and types of deposits, as well as their maturity dates and validity periods, and the parity of the national currency against gold and foreign currencies. It manages gold and foreign exchange reserves and trades in foreign exchange and precious metals on the stock exchange.
The Bank, in particular, carries out the duties of financial and economic advisor, fiscal agent and treasurer to the Government.
The Bank has the privilege of issuing banknotes in Turkey, and the authority to take decisions on money and credit issues and to submit proposals to the Government. The Bank determines the rediscount, discount and interest rates applicable to its own transactions.
The Bank presents to the Government, when required, its views with regard to measures to be taken on money and credit, and submits advisory opinions on matters related to implementation of the Banking Law or on banking and credit issues in general, upon request of the Government.
The Bank can also be consulted prior to any decision granting permission for the establishment of banks and other financial institutions, as well as for the liquidation of such institutions for which the power to liquidate rests with the Government.