"The Arbitration Center Will Provide Sanctions Power To The Central Advisory Board"
Albaraka Turk General Manager Melikşah Utku made important statements with regard to the economic reforms and participation finance industry.
Indicating that the principles and standards of interest-free finance will be determined with the Central Advisory Board, Utku said, "The Arbitration Center to be established within the scope of the Istanbul Finance Center will provide the power of sanction to the Central Advisory Board. A potential conflict between participation finance institutions will be able to be resolved quickly through the Arbitration Center."
Stating that Turkey has an important potential in the field of interest-free finance, Utku said, "When we look at the global Islamic Finance industry, we think that Turkey has significant growth potential at this point. Moves are made towards realizing this potential and getting a share from the global economy. Istanbul Finance Center was one of these moves as well. With the Istanbul Finance Center, we expect the growth of the Islamic financial ecosystem in Turkey, and that Turkey becomes the global attraction point in the field of Islamic finance."
The determination of the rules may pave the way for foreign investments
Utku made evaluations by drawing attention to the importance of creating a financial ecosystem, not just a system in which banks exist, and stated, "In addition to participation banking, developments in fields such as exchange-traded funds, insurance companies, halal catering companies, and halal clothing will contribute to this situation. With the Interest-Free Finance Law, which will regulate all these activities under a single roof, the way for this situation is expected to be cleared. In addition, the determination of the rules in this field may pave the way for foreign investments as well. In this context, the reforms satisfy the needs. The Interest-Free Finance Law will also bring the interest-free finance ecosystem to a vast majority of the public. The elimination of the deficiencies in this field will make a valuable contribution to the economy of the country."
Emphasizing that the Central Advisory Board should inspect the industry, Utku said, "The Central Advisory Board will be an important field of duty. The principles of interest-free finance will be determined, and standards will be set for all stakeholders through the Central Advisory Board. In fact, an Advisory Board was established by the TKBB in 2018 with persons that are specialists in their fields, complying with the principles and standards of participation banking activities. The Central Advisory Board will expand the scope of activity in the existing structure and undertake the task of supervision. It will also pioneer the formation of interest-free financial institutions at international standards."
A potential conflict will be able to be resolved quickly through the Arbitration Center.
Pointing out that the Arbitration Center to be established within the scope of Istanbul Financial Center will also provide the Central Advisory Board with the power of sanction, Utku said, "A potential conflict between participation finance institutions will be able to be resolved quickly through the Arbitration Center. Therefore, this institution will remedy Turkey's deficiencies in the field of interest-free finance and pave the way for Turkey's growth in this field."