Türkiye’s Central Bank Faces Scrutiny Over Executive Salaries

Public outrage grows as top officials receive raises despite TL 1.5 trillion in two-year losses

Despite accumulating over TL 1.5 trillion in combined losses in 2023 and 2024, the Central Bank of the Republic of Türkiye (CBRT) continues to employ high-paid executives—raising questions about public sector accountability and the effectiveness of recently announced austerity policies.

Central Bank Posts Record Losses for Two Consecutive Years

While the CBRT reported profits of TL 57.5 billion in 2021 and TL 72 billion in 2022, it stunned the public in 2023 with a record-breaking TL 818.2 billion loss. Though the loss declared in 2024 was slightly lower, it still marked the second consecutive year of deep financial setbacks for the institution.

These developments come at a time when the Turkish government has been pushing a strong narrative of “fiscal discipline and public savings.” The stark contrast between that narrative and the high salaries at the Central Bank has sparked renewed public criticism.

Executive Salaries Spark Outrage

CBRT Governor Fatih Karahan’s salary rose from TL 542,000 to TL 604,000 following a January 2025 raise of TL 62,000. Meanwhile, Deputy Governors Cevdet Akçay and Hatice Karahan each received raises of approximately TL 52,000, bringing their monthly salaries to around TL 506,000.

These raises have come under intense scrutiny, especially since both Karahan and Akçay have previously stated that minimum wage increases should be limited to the official inflation target—a position criticized as out of touch, particularly since taxes and penalties were revalued by 43.93%, well above the inflation target.

Austerity Measures Announced by Government

Finance Minister Mehmet Şimşek recently unveiled a new “Public Savings and Efficiency Package”, which includes a three-year freeze on new government vehicles and buildings, the removal of shuttle and housing services for public employees, and a hiring cap tied to retirement numbers.

However, the Central Bank’s massive losses and six-figure executive salaries have drawn public skepticism over the government’s commitment to equitable and impactful austerity.

Critics argue that calls for belt-tightening cannot be taken seriously while the institution responsible for managing monetary policy posts record losses and continues to award generous executive pay packages.