Vice Minister of TRNC Central Bank Ramadan Erkiner attended the conference themed “Recent Developments in Central Banking” which was organized by European University of Lefke (EUL) Faculty of Economics & Administrative Sciences Department of Banking & Finance.
Erkiner; Central Banks are independent institutions which are free from political struggles, and works with laws
Erkiner made presentation on the topics; What is Central Banking, Central Banking within the Historical Process, Duty of and Functions of Central Banking and Recent Developments in Central Banking, and explained the concept of central banking as, the top institution in charge of monetary policy, which conducts the banking operations of a country. Erkiner stated the aim of central bank as to maintain the stability of the currency and money supply of an individual country and to raise the financial stability to the upper levels and added that, “Central Banks are independent institutions which are free from political struggles, and works with laws”.
Pointing out that there weren’t any central banks in TRNC until 1983, Erkiner said that banking transactions in TRNC were conducted by Ziraat Bank. Erkiner stated that with the rise of banking institutions after the establishment of TRNC and the insufficiency of the Ministry of Finance’s in inspections have made the establishment of a Central Bank in TRNC and added that, “From this point on 6 May 1983 the law was accepted and the TRNC Central Bank started its activities with 43 employees on 6 June 1984”.
Erkiner; Duty and Functions differ from country to country according to economic development and social structure
Erkiner said that “Duty and Functions of a Central Bank differ from country to country according to economic development and social structure. While countries with rich and free market arrangements remain largely in control of the monetary volume and banking system in the market, central banks in the underdeveloped countries undertakes much broader functions for the development of the country”.
Erkiner stated that after the depth and spread potential of the 2008 crises was understood, basic hypothesis of neoliberal paradigms of Central Banking were bring into question and after the crises, it was comprehended that they had to produce more policies in the fields such as national economy methods, and Financial Regulation and Economic Growth of Central Banks. Pointing out that especially in developing economies, Central Banks are going into way to develop innovative instruments and approaches when designing their monetary policies, Erkiner stated that, in this sense, a new generation of Central Banking, which could be called “Developmentist Central Banking”, is created. Erkiner said that these new approaches also attach importance to economic growth, employment, investment, financial stability and structural transformation.
At the end of the conference, Head of Faculty of Economics & Administrative Sciences Department of Banking & Finance Assist. Prof. Dr. Osman Aziz Altay presented a certificate of appreciation to Erkiner.