The 12th International Islamic Economics and Finance Conference (IIEFC) was organized by Istanbul Sabahattin Zaim University International Islamic Economics and Finance Application and Research Center in cooperation with national and international organizations, under the coordination of the Islamic Research and Education Institute, an organization of the Islamic Development Bank. edited online.
Minister of Treasury and Finance Berat Albayrak, who attended the meeting via video conference, emphasized that it is essential for financial institutions that provide resources to the real economy to have a solid and sustainable financial structure for sustainable development.
Albayrak pointed out that recent events show that the financial system, whose main function in the economy is to build a bridge between savings and real investments, cannot fulfill its duty properly with its current structure, and said:
“It has shown that the system, which should contribute to the increase of production and welfare, can come to a position that can threaten financial and economic stability. Participation financial institutions are of strategic importance for us. After the global financial crisis, the advantages of the participation finance system have been clearly seen and the development of the sector has gained momentum all over the world.
In Turkey, participation financial institutions gained legal bank status in 2005, and since then they have surpassed conventional banks with an annual growth rate of 23 percent, and their market share in terms of asset size has increased from 2.4 percent to 6.5 percent. “
Stating that the share of participation funds in retirement investment funds has increased rapidly in the recent period, reaching levels of 16 percent, Albayrak said that despite all these positive indicators, at this point, participation financial institutions have not yet been able to adequately utilize the potential they have.
“We started the process of establishing the Participation Reinsurance Fund”
Berat Albayrak noted that in order for these institutions to reach the market share they deserve, they must reach a level where they can compete with conventional financial institutions in pricing and product and service diversity.
Albayrak stated that for this purpose, there is a need for highly qualified human resources who are educated in both finance and fiqh and who understand the market and customers’ needs well, and made the following evaluations:
“When it comes to interest-free finance in Turkey, the first thing that comes to mind is participation financial institutions. However, interest-free finance also has a great potential in the capital markets and insurance fields. In this sense, legislation and institutional structure that will encourage participation insurance will be developed and regulations that will appeal to all kinds of risk groups will be put into effect.” we started.
Additionally, we started the process of establishing the Participation Reinsurance Fund to prevent the flow of country resources abroad. “We are taking supportive steps towards the spread of participation finance in the field of alternative finance, especially crowdfunding.”
Albayrak stated that they have put into operation all the tools and mechanisms that will strengthen the place of the interest-free finance system in the Turkish economy and financial system, and said, “Our goal is to make Turkey a world leader in the world with its advanced financial infrastructure, young, dynamic population and qualified workforce, as well as the advantages of the Istanbul Financial Center with its geostrategic location.” “to make it the center of interest-free finance.” said.
Source: https://www.aa.com.tr/tr/ekonomi/bakan-albayrak-hedefimiz-turkiyeyi-dunyada-faizsiz-finansin-merkezi-haline-getirmek/1876417
