Legislation & Duties of Financial Stability Committee
The Republic of Turkey The Official Gazette
Date: 8 June 2011 No.:27958
Decree Law no 637 amending law no 4059
The Decree Law no 637 in the Official Gazette no. 27958 that amends the Law on the Structures and Duties of the Undersecretariat of Treasury no. 4059 Additional Clause 4:
-ADDITIONAL CLAUSE 4: The Financial Stability Committee, under the chairmanship of Deputy Prime Minister for Economic and Financial Affairs responsible for the Undersecretariat of Treasury is composed of The Undersecretary of Treasury, The Governor of Central Bank of The Republic of Turkey, The Chairman of Banking Regulation and Supervision Agency, The Chairman of Capital Markets Board of Turkey, The Chairman of Savings Deposit Insurance Fund.
In the absence of the Minister, a committee member is appointed by the Minister and conducts the meeting. In cases of Committee meetings on special topics, other Ministers and government executives might be invited by the Deputy Prime Minister.
Duties of the Financial Stability Committee are;
- To determine and monitor systemic risks that might spread to whole financial system and to identify necessary measures and policy proposals in order to mitigate them.
- To warn related institutions about systemic risks and to follow the relevant practices regarding policy proposals.
- To evaluate systemic risk management plans prepared by the related institutions.
- To coordinate the systemic risk management.
- To collect all the data and information within the context of its duties, and to coordinate policies and implementations among the institutions.
- To make decisions related to other subjects within the framework of this law.
- The results of the meetings and the decisions of the Committee are presented to the Council of Ministers by the Deputy Prime Minister.
- In cases where a negative development that could spread over to the entire financial system occurs and such development is detected by Financial Stability Committee, the Council of Ministers shall be in charge to determine the measures to be taken and all the relevant institutions and agencies are competent and responsible for promptly implementation of measures taken.