Banking Regulation and Supervision Agency’s foreign relations have three dimensions. Agency have collaboration with foreign supervisory authorities related to consolidated supervision, close cooperation with European Union as a candidate country, strong links with multinational institutions and relations with other international and foreign institutions.

Relations with Foreign Supervisory Authorities

Some Turkish banks are operating through subsidiaries or branches in foreign countries while many foreign banks continue their activities in Turkey. In order to improve the effectiveness of the consolidated supervision, BRSA collaborates with foreign supervisory authorities. Accordingly, BRSA signs Memorandum of Understanding (MoU) with some foreign supervisory authorities on the consistency of policies and regulations pursuant to Article 98 of the Banking Law Nr. 5411.

The MoUs that have been signed as of June 2019 are listed in the table below.

MEMORANDUM OF UNDERSTANDINGS

Relations with Europen Union

Turkey is a candidate country to European Union (EU). Accordingly there exists an extensive effort in Turkey to align national legislation with EU acquis and to improve the administrative capacity for an effective implementation of new regulations.

Within this context, BRSA participates in the negotiations with EU and responsible for an effective harmonization of the regulations. In recent years, BRSA had many amendments in banking regulations in order to incorporate EU laws. As a result banking sector is now one of the most prepared sectors for EU accession.

BRSA is extensively involved in the screening chapters titled Financial Services, Free Movement of Capital, Financial Control andCompanyLaw. Within this context, “EC-Turkey Subcommittee No 4:Economic and Monetary Issues, Capital Movements and Statistics” and “EC-Turkey Subcommittee No 2:Internal Market and Competition” were formed according to the Decision of the Turkey-EU Partnership Commission with the aim of directing the analytical investigation process related to the legislation between Turkey and the Union.

Moreover, Turkey participates in the studies of Pre-Accession Economic Program (PAEP) every year, within the framework of Pre-Accession Financial Monitoring Process started by the European Commission in 2001.

Relations with Multinational Institutions and Other Foreign Institutions

BRSA has also strong links with multinational institutions such as International Monetary Fund (IMF), World Bank (WB), Bank for International Settlements (BIS), Organization for Economic Cooperation and Development (OECD), World Trade Organization (WTO) and Financial Action Task Force (FATF).

On May 2009, BRSA became a member of Basel Committee on Banking Supervision (BCBS) which conducts studies to enhance effective risk management practices and market discipline in banks and to improve efficiency of capital adequacy measurement techniques.

BRSA became a member of Islamic Financial Services Board (IFSB) on December 2010, which conducts studies on ensuring standardization in non-interest financial services and also became a member of Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) on June 2016, which conducts studies for the standardization of finance practices, governance, auditing, accounting standards and financial reporting for non-interest financial institutions.

BRSA closely follows the work done by BCBS, IFSB and other international standards and best practices on banking supervision and participates in different studies that are conducted by these institutions globally. Within this context, the most important international projects are New Basel Capital Accord (Basel-II) and International Accounting Standards.

BRSA is the member of Supervision and Reconciliation Committee (SRC) which is the Standing Committee of Financial Stability Board (FSB).

Within the scope of the cooperation with International Monetary Fund (IMF), BRSA participates the discussions of Article IV consultations with the Fund. Also BRSA continues to cooperate with World Bankon banking issues through projects and seminars.

In the framework of the studies conducted by the Organisation for Economic Co-operation and Development (OECD), BRSA contributes to the studies of Financial Markets Committee of OECD and the other committees as well.

BRSA has been following and participating in multilateral discussion tours on General Agreement on Trade in Services (GATS) that aim to increase the liberalization and transparency in the international service trade under World Trade Organization.

Moreover, BRSA collaborates with FATF that was established by G-7 countries with the aim of providing the cooperation required to prevent the use of banking sector and financial system as an instrument of money laundering.

BRSA has been the coordinator of Working Group of Banking and Finance of Black Sea Economic Cooperation Organization since 2009.

BRSA also meets with different foreign institutions to discuss and communicate the developments in the banking sector. The institutions include rating agencies, investment banks that have exposure to Turkish markets, potential foreign investors and country analysts.