Financial Stability Committee convened: Statement was made for Borsa Istanbul

The Financial Stability Committee (FIK) convened at 08:00 under the chairmanship of the Minister of Treasury and Finance, Mehmet Şimşek. In the statement made after the meeting, it was said: "There is no fundamental or structural risk to the functioning of Borsa Istanbul and our capital markets. The problem is concentrated in a certain part of the fund market and is temporary and manageable." So, what is the Financial Stability Committee and what is its purpose? Who are the members of the Financial Stability Committee?

WHAT IS THE FINANCIAL STABILITY COMMITTEE?

The Financial Stability Committee is the structure where relevant institutions come together to supervise the financial system and maintain financial stability. The main purpose of the committee is to ensure cooperation and coordination among relevant institutions in identifying vulnerabilities in the financial system and managing systemic risks.

The scope of duty of the FIK includes identifying systemic risks that may threaten financial stability and security, establishing the necessary methods for effective monitoring and management of these risks, and determining policy recommendations.

WHAT DOES THE FINANCIAL STABILITY COMMITTEE DO?

The main tasks of the committee include:

Identifying and monitoring systemic risks and vulnerabilities that may threaten the financial system

Developing policy recommendations to reduce these risks

Evaluating the effects of financial regulations

To contribute to the healthy and sustainable development of the financial sector

Strengthening coordination among financial regulatory institutions.

The committee is chaired by the Minister of Treasury and Finance. The committee includes the heads of the Ministry of Treasury and Finance, Strategy and Budget Presidency, CBRT, CMB, BRSA, SEDDK and TMSF.

In short, the purpose of the FIK is not to manage individual banks or companies; To detect risks that may occur throughout the financial system in advance and to ensure joint action between institutions.

These studies are carried out within the scope of ensuring cooperation and coordination among committee members without compromising their independence.

WHO ARE THE MEMBERS OF THE FINANCIAL STABILITY COMMITTEE?

The Financial Stability Committee consists of the heads of relevant institutions responsible for the supervision of the financial sector. The committee is chaired by the Minister of Treasury and Finance.

According to the legislation, the committee includes the Deputy Minister of Treasury and Finance and the Heads of the Strategy and Budget Directorate, the Central Bank of the Republic of Turkey (CBRT), the Capital Markets Board (SPK), the Banking Regulation and Supervision Agency (BDDK), the Insurance and Private Pension Regulation and Supervision Agency (SEDDK) and the Savings Deposit Insurance Fund (TMSF).