The banks managed to solve this problem for card payments, but just consider how long it took to achieve the volumes that we see today. Consider also the fact that the banks did not manage to solve this problem for an e-money product called Cash Card that was finally phased out a number of years ago. A natural consequence of network effects is that those who are already connected to a welldeveloped network, for example for card payments, will think carefully about whether it is worth connecting to a new network that is currently much smaller but might in the future be as large or larger than the existing network. There is a risk of not being able to reach as many payers and payees in the new network. It may thus be better for consumers or merchants to wait and perhaps join the network later when a critical mass of users has been achieved. Launching a service that is not based on an established network is therefore much more difficult and more costly than adding new services to an established network. Third, it is easier and less costly for established payment mediators to launch new products as they have the advantage of having already attracted a circle of customers that buy their services. These customers can easily be reached through the relationship that is already in place. The customers also already have an account with the mediator, usually a bank, which can be used as the basis for new payment services.
However, it is worth mentioning once more that the banking system should not slacken risk management principles by simply relying on the more flexible and effective New Turkish Lira liquidity management and the foreign exchange liquidity facility of the Central Bank. On the contrary, the banking system should use risk management principles effectively. Annex: calendar for 2008 MPC Meeting Dates 17 January, Thursday  Inflation Report  Financial Stability Report  31 January, Thursday  14 February, Thursday 19 March, Wednesday 17 April, Thursday  30 April, Wednesday  15 May, Thursday  30 May, Friday  16 June, Monday 17 July, Thursday  28 July, Monday  14 August, Thursday 18 September, Thursday 22 October, Wednesday 19 November, Wednesday  31 October, Friday 28 November, Friday  18 December, Thursday  10  BIS Review 4/2008