Steps Are Taken to Strengthen the Interest-free Finance System

Relevant institutions, including the Ministry of Treasury and Finance, Finance Office of the Presidency of the Republic of Turkey, and the Banking Regulation and Supervision Agency (BRSA) will be responsible for taking the steps to strengthen the interest-free finance system within the framework of the Economic Reform Package announced by President Recep Tayyip Erdoğan.

The actions to strengthen the system, collected under 3 main objectives of "Introducing a Participation Finance Law, establishing a Central Advisory Board under international standards for all the sectors", "introducing a participation finance rating system", and "establishing a participation finance arbitration mechanism within the Istanbul Finance Centre" are planned to be completed by the end of the year.

The participation finance sector will be under one roof

Within the scope of the Economic Reforms Action Plan, an independent Participation Finance Law will be prepared until December 31, 2021, and by doing this, the participation finance sector, which is currently regulated under various laws, will be under a single roof, and the Central Advisory Board will be established under international standards for all sectors in the participation finance.

A "participation finance rating" system will be implemented

A "participation finance rating" system will be put into practice to independently rate the compliance levels of participation finance institutions with the principles of participation finance. And a participation finance arbitration mechanism at international standards will also be established at the IFC by the end of the year.

These reforms to strengthen the interest-free finance system will have been completed by the end of the year as part of the calendar of the Economic Reforms Action Plan.

Click the link to view the Economic Reform Calendar.