TKBB Secretary General Osman Akyüz talked about the Reform Package

"The reforms will help us in our journey to become the regional financial centre and open up to the international arena, turning into a global centre," said Osman Akyüz, TKBB Secretary General.

Osman Akyüz, Secretary General of the Participation Banks Association of Turkey (TKBB), stated that the Economic Reform Package announced by President Recep Tayyip Erdoğan would further reinforce the interest-free finance system and contribute to making our country a regional finance centre.

President Recep Tayyip Erdoğan announced the economic package, which includes that macroeconomic stability policies and structural policies that have been developed for a very long time under the leadership of Lütfi Elvan, the Minister of Treasury and Finance.

The reforms revolve around the concepts of "public finance", "price stability", "financial sector", "current deficit", "employment", and "structural policies" in the macroeconomic area and "corporate governance", "investment incentives", "facilitating domestic trade", "competition", and "market surveillance and checks" on the structural side.

On "strengthening the interest-free finance system" side of the reforms, it was decided to introduce the Interest-free Finance Law to establish a Central Advisory Board, implement the "participation finance rating" system, and establish a mechanism to fortify the participation finance system.

"Reforms respond to needs in general"

Osman Akyüz, TKBB Secretary General, emphasised the extensiveness and details of the reform package in his interview with the AA correspondent on the "Economic Reforms" announced by President Erdoğan and talked about its direct response to needs.

Referring to the importance of assessing the success of the program with reform follow-up meetings to be held every 3 months, Akyüz pointed out that determining performance criteria and scheduling reforms would contribute to the economy.

"We needed a Participation Finance Law to bring and regulate participation banking, insurance, and other interest-free financial activities under one roof. This law will carry the interest-free finance ecosystem to a wider public. We are aware of the preparations and activities in this regard," he said, pointing out the achievements that the reforms will make.

Reminding that they also established an Advisory Board within TKBB to align the activities of participation banking with the professional principles and standards, Akyüz stated that the Central Advisory Board, which is referred to in the reforms, would serve the entire interest-free finance ecosystem within international standards.

Stating that the Central Advisory Board would determine the standards within the scope of the principles of interest-free finance, Akyüz also pointed out how many countries in the Middle East had similar institutions and organisations.

"We must be able to compete with the current financial system"

Osman Akyüz also talked about the "Arbitration Centre" to be established within the scope of the Istanbul Financial Centre (IFC) and how it would help resolve disputes regarding participation and finance quickly without going to court.

Mentioning how good it is that IFC would focus on financial technologies (FinTech), Akyüz stated that:

"The aim here is to make Istanbul the centre of interest-free finance. We want to attract foreign capital. We want to be recognised as the London arbitration centres in the international agreements. Istanbul is already the financial centre of our country. Establishing and developing these structures will increase the recognition we receive internationally. And we need regulations for that. A new international finance centre law will be introduced. What is important here is to facilitate and make it less costly to conduct these financial services.

We actually need to prioritise the goal of becoming the priority regional financial centre. We are the central country in this region, and the Balkans, and the Middle East. We only need to take steps to develop this. The reforms will help us in our journey to become the regional financial centre and open up to the international arena, turning into a global centre. For Turkey is already the most developed country of its region financially, economically and for being a safe area."

Stating that what President Erdoğan did was to pave the way for the interest-free finance system, Akyüz added: "The system must prove its adequacy. Everyone who sets their hearts in this sector needs to show great efforts. We need to help the system to stand on its own feet. We should contribute to our nation with our actions. We have left our infancy behind; we need to grow. We must be able to compete with the current financial system. And the system needs to compete to survive."

AA