ECONOMY

2015 11 20

Turkish watchdog to revise Islamic banking regulations

Head of Banking Regulation and Supervision Agency says there is need to change rules governing 'participation banks'

The head of Turkey’s banking watchdog on Thursday pledged to revise the regulations governing the Islamic banking sector.

Mehmet Ali Akben, president of the Banking Regulation and Supervision Agency, said there was a need for changes to the rules governing what are known as “participation banks” in Turkey.

“We are trying to readjust those rules,” he told an Islamic finance conference in Istanbul. “We believe this system will shine out on both a local and global scale in the coming years.”

He said there was demand for a financial model working under non-interest based rules.

Talat Ulussever, chairman of the Borsa Istanbul exchange, called for a system in which members of the public could invest in major projects.

“We need to exert effort in establishing financial structures in which Turkey’s big projects in areas such as energy, communication, defense and infrastructure will be financed by people and profit will be shared by them,” he said.

Ulussever said the 2008 financial crisis showed that conventional finance was could not absorb volatility in global markets.

“There is a recent survey from the OECD [Oragnization for Economic Cooperation and Development] that indicates financing through credit has a negative affect while economies that prefer stock exchanges for their financing needs grow faster and sustainably,” he said.

RELATED NEWS

DO YOU KNOW?

  • Safranbolu Houses

    Safranbolu Houses, featured in the UNESCO World Cultural Heritage List, are being restored by the Housing Development Administration of Turkey. 

  • Care for Pregnant Women Under Risk

    12.275 women benefited from the "guest mother" program, which provides care to pregrant women under risk in health centers before delivery. 

3,484

The number of historical works renovated in the last 8 years

  • From Electricity Importer to Exporter

    Turkey increased electricity production from 31 thousand to 45 thousand megawatts in ten years and started selling electricity to Georgia, Syria and Greece. 

  • Investing in Farmers

    Turkey increased agricultural investments in the past 10 years from 1.8 billion TL to 9 billion TL.  

  • Scholarship to Returning Academics

    The Scientific and Technological Research Council of Turkey now offers 3. 250 TL monthly scholarship to returning academics who complete their Ph.Ds abroad. 

  • First step for Turkish fighter jet

    Feasibility works have been launched for first Turkish fighter jet planned to be completed by 2023, the centenary of the Republic of Turkey. 

  • World Leader in Transit Passengers

    Carrying 18 million passengers in the Asia-Europe transit corridor in 2010, Turkey saw the highest increase in transit passenger numbers in the world. 

  • Record Growth in Technology Sector

    The Turkish technology sector grew 19.4% in 2010, closing the year with 17.5 billion TL revenue. 

  • Every student has Internet Access

    Every school in Turkey now has ADSL internet connection.  

  • Government Takes Care of Traffic Accident Victims

    The government now covers all medical expenses of those injured in traffic accidents. 

  • Double-lane roads save 1525 lives

    The number of people who were killed in traffic accidents dropped to 4,041 in 2010 from 5,566 in 2000 thanks to 13,500 more kilometers of double-lane roads, which saved 1,525 lives a year on average.