İkram Göktaş, General Manager of Vakıf Katılım, became the Chairman of the Board of TKBB

Metin Özdemir, General Manager of Ziraat Katılım, handed over his position as the Chairman of the Board of TKBB, to İkram Göktaş, General Manager of Vakıf Katılım, at the Ordinary General Assembly Meeting of Participation Banks Association of Turkey (TKBB)

Continuing their steady growth non-stop, participation banks closed 2020 with successful financial performances. By the end of 2020, the funds collected reached TRY 322 billion with a 49% increase while extended funds reached TRY 240 billion with a 60% increase. Net profitability also increased by 52% and asset size increased by 54%, reaching TRY 437 billion and increasing the share within the banking industry to 7.2 levels. Providing intermediary services in accordance with the principles of participation finance in their economic activities, participation banks supported the real sector effectively and continued their steady growth during the pandemic.

Participants of the Ordinary General Assembly Meeting evaluated participation banking sector's support to the economy

The coronavirus pandemic, which first appeared in China and rapidly spread to the entire world, also affected Turkey profoundly. Our Association did not hold the 19th Ordinary General Assembly Meeting of TKBB in 2020 due to the pandemic, for "health first" is our first and foremost priority in line with our human and human values-oriented principles.

Therefore, the 19th Ordinary General Assembly (non-elective) for the 2019-2020 Period, and the 20th Ordinary General Assembly (elective) for the 2020-2021 Period, were held at TKBB headquarters on May 25, 2021, with the representatives of our member banks, taking the necessary measures against the pandemic.

Speaking at the Ordinary General Assembly Meeting, Metin Özdemir, Chairman of TKBB Board, evaluated local and global developments in the fields of finance and economy in 2020. "Last year, social and economic lives were deeply affected by the Covid-19 pandemic on a global scale. As one of the countries most greatly affected by the pandemic, the USA implemented an expansionary monetary policy in 2020 in order to minimize the effects of this historic constriction. It implemented additional financial incentives to stimulate economic activity. Europe was also negatively and substantially affected by the pandemic. While there was a double-digit constriction in the regional economy, the service sector, and especially the tourism sector, came to a standstill during the pandemic. The European Central Bank (ECB) continued its expansionary monetary policy by injecting additional funds into the market. Additional stimulus packages to relieve the markets and financial aid programs for southern countries in dire straits gave the Eurozone a room to breathe."

Continuing with the Turkish economy in 2020, Özdemir added, "Turkey took a positive turn by taking the pandemic under control in the third quarter of the year. It contributed to the acceleration of the economy with incentives and support packages implemented to support the real sector. The CBRT followed an expansionary monetary policy through bond purchases and took additional measures to eliminate possible liquidity shortages in the market. The CBRT also provided lower-rated and long-term liquidity opportunities to encourage banks to extend funds. Another very important development for Turkey in 2020 was the discovery of the natural gas reserves in the Black Sea. "This development in the energy field, which is the highest import item of our country, was recorded as an important gain both in terms of our economy and our energy independence."

Talking about the ongoing and increasing support of participation banks to the economy, Özdemir said that participation banks would be the biggest supporters of export-oriented, import substitutes that add value to our country, especially SMEs.

TKBB continued its activities non-stop even during the pandemic

"Although we spent a portion of 2020 under remote working conditions, we need to say that TKBB has diversified and sped up its activities throughout this period. Aiming and striving to be the common roof and harmonious voice of the sector, our Association continued to make a versatile and powerful contribution to the development and growth of the participation banking sector in Turkey throughout the year. We have focused on deepening our cooperation and contributions in and out of Turkey. We have continued, without slowing down, to help the participation banking sector reach wider audiences through perception and reputation management activities. Our Central Advisory Board, which was established in 2018, has also not taken any break from its activities in this period.

Another prominent agenda item for TKBB in 2020 was our structuring and breakthroughs in our international relations. In this regard, we made contacts and took cooperation steps with interest-free financial authorities, regulatory agencies, participation banks, and academic circles of countries such as Bahrain, Morocco, Djibouti, and especially Malaysia, with which we have long-term relations and cooperation. The developments regarding Participation Banking in the Economic Reform Package are of vital importance for our 2025 goals. In line with our 2025 goals, we have planned the actions that we will take for the sound and sustainable development of participation banking in our country under six basic strategic goals. With the participation of all our stakeholders, we created our 2025 vision with Communication, Ecosystem, Product Range, Standards and Governance, Digital and Competence Building goals."

İkram Göktaş, General Manager of Vakıf Katılım, became the Chairman of the Board of TKBB for the new period

Metin Özdemir, General Manager of Ziraat Katılım, handed over his position as the Chairman of the Board of TKBB, to İkram Göktaş, General Manager of Vakıf Katılım, at the Ordinary General Assembly Meeting.