WE ARE TAKING SOLID STEPS TOWARDS OUR 2025 GOALS
We target a 15% market share in total assets for 2025
As participation banking, we were affected by the pandemic in 2020, albeit to a certain extent. In fact, 2020 was one of the periods that our sector was affected the least by the external factors. The reason for it is that we were quite prepared for the digital transformation. Our banks continued their services, keeping up with the digital transformation. And the Government assigned additional duties to the banks in this period. Banks provided their customers with extra time and restructured their receivables. Customers were granted convenience in accessing payment channels. Turkish banks were, in a way, tested in order not to disrupt the payment and banking systems of our country. Not only participation banks but also our conventional banks successfully left these troubling days behind.
WE TARGET 15% MARKET SHARE
Participation banks had TRY 3.7 million worth of profit in 2020. Significant amounts were achieved in the funds both collected and used in the participation banking sector. In 2020, there was a growth of 49% in funds collected, 61% in funds extended, and 54% in total assets.
We target a 15% market share in total assets for 2025. Hopefully, we will achieve serious growth in the economy and reach these targets.
We also updated our Strategy Document in 2020. Because the conditions in Turkey changed substantially. In this respect, we asked the independent external audit company that prepared our 2015 Strategy Document to update it. TKBB conducted a very concentracted project for the update of the strategy document. We are preparing the Strategy Document to develop the industry and build the financial architecture. We increased the basic strategic goals in our document from five to six and created action plans based on them. In the next four to five years, we will work towards implementing the issues we have identified as action points. TKBB will schedule what needs to be done to achieve these strategic goals with both its members and relevant institutions and organisations, and then the goals will start to be achieved.
WE CLOSELY FOLLOW THE DEVELOPMENTS IN THE WORLD
We closely follow the developments in the world to achieve our goals. We are trying to improve ourselves in terms of products, digitalisation, communication, and education globally, which we can adapt to ourselves. For example, we translated the international standards of the field into Turkish. And we are in close contact with Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI).
We are increasing our awareness very rapidly on the global side of the communication strategy. In this respect, we added the English translation of our content in our Katılım Finans journal. Apart from that, we had a meeting with the Qatar Financial Centre last week. Then we negotiated with the Central Bank of Morocco. We provided certified training to foreign correspondent banks that are working with participation banks. In summary, we are doing our best to reach the level that the Islamic finance enterprises in Turkey deserve, and we will continue to do so.
TKBB Secretary General Osman Akyüz