The peer review examined two topics relevant for financial stability and important for Turkey: the macroprudential policy framework and tools, and bank resolution. The review focused on the steps taken by the authorities to implement reforms in these areas, including with respect to relevant recommendations in the 2011 Financial Sector Assessment Program report by the International Monetary Fund and the World Bank.
The peer review concludes that progress has been made in developing the macroprudential policy framework and that the current bank resolution framework has served Turkey well to date. However, there is additional work to be done in both areas. On the macroprudential policy framework, this involves developing an integrated risk assessment and policy framework as well as enhancing public communication of macroprudential policies. On resolution, the current framework can be further strengthened by incorporating additional features of the FSB’s Key Attributes of Effective Resolution Regimes for Financial Institutions.