PART 1 GENERAL INFORMATION

Established as a joint-stock company on 30 June 1930, the CBRT commenced operations on 3 October 1931 in Ankara.

CBRT’s share capital amounts to TL 25,000 and is divided into four classes of shares designated as “A”, “B”, “C”, and “D”. Class A shares belong to the Turkish Treasury and by law cannot amount to less than 51 percent of the Bank’s total capital. Class B shares are held by nationally-owned banks with operations in Turkey. Class C shares are held by non-national banks and by privileged companies. Class D shares are held by Turkish commercial enterprises and by real persons and legal entities that qualify as Turkish citizens. As of end-2017, these shareholding interests corresponded to 55.12 percent (A), 25.74 percent (B), 0.02 percent (C), and 19.12 percent (D) of CBRT’s capital.

The Turkish Grand National Assembly delegated its constitutionally-mandated authority to print banknotes to the CBRT indefinitely. For this reason, the CBRT is the sole entity in Turkey that is allowed to print and issue banknotes.

Under an amendment to CBRT’s governing law (Law No. 1211) that was passed by Turkey’s parliament on 25 April 2001, the Bank’s primary objective was defined as “achieving and maintaining price stability”. The law also grants the CBRT the authority to set and manage monetary policy on its own and similarly to decide what tools it will use for that purpose. These provisions effectively give the CBRT instrument independence. In addition, the Bank introduces regulatory measures concerning money and FX markets that will ensure stability in the financial system. The CBRT is also charged with supporting the government’s growth and employment policies insofar as doing so does not conflict with its own primary objective of price stability.

As of end-2017, the CBRT was conducting its operations through 18 departments and 21 branches located in various provinces, and had economic consultants and attaches who had been assigned to Turkish Ministry of Foreign Affairs representative offices in Frankfurt, London, New York, Tokyo, and Doha. Employing a total of 3,730 people within a dynamically changing structure in order to keep a close watch on developments taking place in Turkey and abroad, the CBRT defines and implements policies while also conducting its operations within the framework of its governing law and of the duties and authorities with which it is charged.