Financial Inclusion Strategy of Turkey
Republic of Turkey Undersecretariat of Treasury
Financial Inclusion Strategy of Turkey G. Begum UNAL Assistant Expert Financial Inclusion Strategy & Data Programme 27 November 2014
OUTLINE
Overview of Financial Inclusion Strategy
Objective and Goals
Current Situation
Financial Education Action Plan
Financial Consumer Protection Action Plan
2
Overview of Financial Inclusion Strategy G20 PLP
In 2012, at G20 Los Cabos Summit, Turkey committed to G20 Financial Inclusion Peer Learning Program (PLP)
G20 PLP includes
Creating a high-level coordination platform or mechanism, Developing a National Strategy on Financial Inclusion.
In 2013, Turkey became a member of Alliance for Financial Inclusion (AFI).
3
Overview of Financial Inclusion Strategy
Financial Inclusion comprises; Financial
Access
Financial
Education
Financial
Protection
4
Overview of Financial Inclusion Strategy
In Turkey, Financial Stability Committee is the high level coordinating body for financial inclusion strategy.
The Committee is chaired by Deputy Prime Minister.
Strategy was prepared by Financial Stability Committee members in coordination and cooperation with stakeholders.
It was signed by Prime Minister and came into force with a Prime Ministry Circular on June 5th, 2014.
5
Overview of Financial Inclusion Strategy
Strategy encompasses two action plans: Financial
Education Action Plan
Financial
Consumer Protection Action Plan
Turkey is in a remarkable position regarding supply-side of financial access. Thats why the strategys aim is to mainly strengthen the demand-side. 6
OBJECTIVES AND GOALS
Objectives and Goals
Objectives: Extending using of financial products and services to all segments of the society,
Including those who are financially excluded to the financial system
Improving the quality of financial products and services, 8
Objectives and Goals
Goals:
Increasing both access to and usage of financial products and services by increasing knowledge and awareness.
Ensuring efficient measures are taken by the leading agencies for the protection of financial consumers.
9
CURRENT SITUATION
Current Situation Access to finance technical committee action plans
Consumer Protection Law
New Capital Markets Law
Istanbul Finance Center
private pension system
payment system regulations
credit guarantee mechanism
venture capital and business angels
Microfinance Studies
SME Action Plans
nonbanking financial sector regulations
11
Current Situation
Financial literacy is in a low-level.
Financial consumers have some difficulties adopting new market conditions.
12
FINANCIAL EDUCATION
ACTION PLAN
Financial Education Action Plan There
are 36 actions in the Plan. CMB is the coordinator Plan will be implemented btw 20142017 Relevant institutions: Undersecretariat of Treasury Ministry of National Education Ministry of Family and Social Policies Ministry of Development 14
Financial Education Action Plan
Target Groups:
family and housewifes, primary and secondary school students, SMEs, financial sector workers, Young unemployed, And groups at teachable moments of life such as marriage, divorce, pregnancy, loss of job, etc
15
Financial Education Action Plan
With extending the financial education Increasing
individuals economic welfare
Enhancing
investor base,
Providing
qualified workforce to the
financial sector
16
FINANCIAL CONSUMER PROTECTION ACTION PLAN
Financial Consumer Protection Action Plan
There are 19 actions in the Plan. BRSA is the coordinator Plan will be implemented btw 2014-2016 Relevant institutions:
Undersecretariat of Treasury Ministry of Development Ministry of Customs and Trade BRSA
18
Financial Consumer Protection Action Plan
Improve regulatory and supervisory coverage for financial consumer protection Ensure that financial consumers make informed choices about financial products and services and know the ways for legal remedy. Increasing efficiency of resolution mechanism on consumer rights
19
THANK YOU
For further information http://www.treasury.gov.tr E-mail: [email protected]
Financial Inclusion Strategy of Turkey G. Begum UNAL Assistant Expert Financial Inclusion Strategy & Data Programme 27 November 2014
OUTLINE
Overview of Financial Inclusion Strategy
Objective and Goals
Current Situation
Financial Education Action Plan
Financial Consumer Protection Action Plan
2
Overview of Financial Inclusion Strategy G20 PLP
In 2012, at G20 Los Cabos Summit, Turkey committed to G20 Financial Inclusion Peer Learning Program (PLP)
G20 PLP includes
Creating a high-level coordination platform or mechanism, Developing a National Strategy on Financial Inclusion.
In 2013, Turkey became a member of Alliance for Financial Inclusion (AFI).
3
Overview of Financial Inclusion Strategy
Financial Inclusion comprises; Financial
Access
Financial
Education
Financial
Protection
4
Overview of Financial Inclusion Strategy
In Turkey, Financial Stability Committee is the high level coordinating body for financial inclusion strategy.
The Committee is chaired by Deputy Prime Minister.
Strategy was prepared by Financial Stability Committee members in coordination and cooperation with stakeholders.
It was signed by Prime Minister and came into force with a Prime Ministry Circular on June 5th, 2014.
5
Overview of Financial Inclusion Strategy
Strategy encompasses two action plans: Financial
Education Action Plan
Financial
Consumer Protection Action Plan
Turkey is in a remarkable position regarding supply-side of financial access. Thats why the strategys aim is to mainly strengthen the demand-side. 6
OBJECTIVES AND GOALS
Objectives and Goals
Objectives: Extending using of financial products and services to all segments of the society,
Including those who are financially excluded to the financial system
Improving the quality of financial products and services, 8
Objectives and Goals
Goals:
Increasing both access to and usage of financial products and services by increasing knowledge and awareness.
Ensuring efficient measures are taken by the leading agencies for the protection of financial consumers.
9
CURRENT SITUATION
Current Situation Access to finance technical committee action plans
Consumer Protection Law
New Capital Markets Law
Istanbul Finance Center
private pension system
payment system regulations
credit guarantee mechanism
venture capital and business angels
Microfinance Studies
SME Action Plans
nonbanking financial sector regulations
11
Current Situation
Financial literacy is in a low-level.
Financial consumers have some difficulties adopting new market conditions.
12
FINANCIAL EDUCATION
ACTION PLAN
Financial Education Action Plan There
are 36 actions in the Plan. CMB is the coordinator Plan will be implemented btw 20142017 Relevant institutions: Undersecretariat of Treasury Ministry of National Education Ministry of Family and Social Policies Ministry of Development 14
Financial Education Action Plan
Target Groups:
family and housewifes, primary and secondary school students, SMEs, financial sector workers, Young unemployed, And groups at teachable moments of life such as marriage, divorce, pregnancy, loss of job, etc
15
Financial Education Action Plan
With extending the financial education Increasing
individuals economic welfare
Enhancing
investor base,
Providing
qualified workforce to the
financial sector
16
FINANCIAL CONSUMER PROTECTION ACTION PLAN
Financial Consumer Protection Action Plan
There are 19 actions in the Plan. BRSA is the coordinator Plan will be implemented btw 2014-2016 Relevant institutions:
Undersecretariat of Treasury Ministry of Development Ministry of Customs and Trade BRSA
18
Financial Consumer Protection Action Plan
Improve regulatory and supervisory coverage for financial consumer protection Ensure that financial consumers make informed choices about financial products and services and know the ways for legal remedy. Increasing efficiency of resolution mechanism on consumer rights
19
THANK YOU
For further information http://www.treasury.gov.tr E-mail: [email protected]
