Who is Hafize Gaye Erkan, the first woman president of Türkiye Central Bank

The Global Outreach Program webpage of Boğaziçi University proudly displays a photograph and a brief profile of one of its most brilliant alumni – Hafize Gaye Erkan.

“Erkan completed in one year the PhD program that takes 2 years, comprising 12 courses. She was the first student to finish the program in one year in the 246-year history of Princeton, a university whose alumni include influential world leaders and personalities who have shaped the world,” the profile reads.

This is serious praise.

But for 41-year-old Erkan, a US-based banker known as the “Awesome Turkish Girl”, the accolades have come naturally all through her remarkable career that spans Wall Street and American corporate boardrooms.

Now she is set to add another feather to her cap when she takes over as the president of Türkiye’s Central Bank, the first woman to hold the prestigious post.

After completing her studies at Boğaziçi University, she ventured to the US to pursue further education and embark on a career in the finance industry. Today, she stands as the youngest finance professor in the country.

Notably, Erkan played a significant role in the establishment and growth of First Republic Bank, a prominent financial institution founded in 1985. Her expertise spans a wide range of financial services, including banking, investment, risk management, technology, and digital innovation.

During her illustrious tenure at First Republic Bank, spanning almost eight years, Erkan held various prestigious positions, including Chairwoman and Chief Investment Officer.

Her comprehensive understanding of the industry allowed her to provide invaluable guidance to the boards and executive management teams of major US banks and insurance companies.

Before her time at First Republic Bank, Erkan made significant contributions during her nearly decade-long tenure at Goldman Sachs. She was Managing Director and Head of the Financial Institutions Group Analytics and Strategies Department.

Her expertise in areas such as balance sheet management, stress testing and capital planning, risk management, and mergers and acquisitions made her a sought-after advisor in the field.

Erkan’s influence extends beyond her roles in financial institutions. In March 2022, she joined the Board of Marsh McLennan, a Fortune 500 company. Additionally, she served on the Board of Tiffany & Co. from 2019 until its acquisition by LVMH in 2021.

Academic interest

Erkan’s passion for academia led her to become a member of the Advisory Council for the Department of Operations Research and Financial Engineering at Princeton University.

Recognised for her achievements and leadership, Erkan has been featured in prestigious lists and publications. In 2019, she was named among Crain’s Top Women in Banking and Finance and the American Banker's Women to Watch list.

Her accomplishments also earned her a spot in the San Francisco Business Times’ 40 Under 40 list in 2018, as well as Crain New York Business's 40 Under 40 list. Notably, research conducted by the San Francisco Business Times revealed that she was the only woman under 40 holding the title of President or CEO in the 100 largest banks in America.

Erkan's commitment to the betterment of society extends beyond her professional achievements. She serves on the Board of Directors for the New York City Partnership and actively supports the National Coalition of Girl's Schools.

Furthermore, Erkan is the visionary founder of the First Republic Fellowship Program, an initiative designed to guide young women from disadvantaged backgrounds through STEM education, mentorship, and professional development.

Her affiliations also include memberships in prestigious organisations such as the Young Presidents' Organization, the Council on Foreign Relations, and the International Women's Forum.

Towards economic transformation

Along with the appointment of Mehmet Simsek as the Minister of Treasury and Finance, Türkiye’s economic landscape is set to undergo significant transformations.

Simsek, who will serve in President Recep Tayyip Erdoğan's new cabinet, took over this position from Nureddin Nebati.

During the handover ceremony, he delivered the messages of "transparency, predictability".

"In a conjuncture where global challenges and geopolitical tensions increase, we will prioritise macro-financial stability by strengthening our institutional quality and capacity. We will start our medium-term program without wasting time. Achieving price stability for sustainable high growth will be our main goal," he said.

Addressing the importance of reducing inflation, increasing predictability, and driving structural transformation, Simsek emphasised the need for fiscal policy and structural reforms to support the central bank's efforts in combating inflation. These policies will be at the forefront of the government's agenda.

Background

Armed with a master's degree in finance and economics from Exeter University, Simsek brings a wealth of experience from his time working in renowned financial institutions in Turkey, the USA, and England.

As a member of the AK Party, he was elected as Gaziantep's Deputy in the 2007 elections.

Simsek, the Minister of State in charge of the Treasury in the 60th government, was appointed the Minister of Finance with the cabinet reshuffle announced in May 2009.

Appointed as the Deputy Prime Minister in Charge of Economy in the 64th Government, he also served as the Deputy Prime Minister responsible for the economy in the new government formed under the chairmanship of AK Party Chairman and Prime Minister Binali Yildirim.

A former top finance official under Erdogan in 2009-18, Simsek also previously worked for some well-known international finance groups, including Merrill Lynch.