Istanbul, Türkiye – 18 November 2024 – The Finance Office of the Presidency of the Republic of Türkiye (CBFO), the Islamic Financial Services Board (IFSB), and the Participation Banks Association of Türkiye (TKBB) successfully co-organised the CBFO-IFSB-TKBB Forum on ‘Strengthening Ties Between the IFSB and the Participation Financial System in Türkiye’ on 18 November 2024. It brought together 150 participants including regulators, policymakers, and industry leaders to address critical issues shaping the Islamic financial services industry (IFSI) in Türkiye.
Addressing the Forum, Mr Necip Fazıl Kaymak, Vice President of the CBFO shared, “Our united goal is for Türkiye to actively participate in the participation finance sector, contribute to the global financial system, and expand its position in the sector. I believe that the discussions held at the forum will strengthen Türkiye’s compliance with international standards in the field of participation finance and contribute to making it a stronger actor in the global financial system,”
He added that “As the Finance Office of the Presidency of the Republic of Türkiye, the Participation Finance Strategy Document (PFSD) that we shared with the public on October 3, 2022, was prepared with the aim of developing participation finance, one of the two main pillars of the Istanbul Financial Centre project, ensuring that it operates in accordance with its spirit, and achieving its rightful position. The Strategy Document aims for a holistic transformation of participation finance for the 2022-2025 period, and efforts are being made in this regard.”
Echoing the sentiment, Mrs. Fatma Çınar, Deputy Secretary-General of the TKBB emphasised, “We are honoured to collaborate with the Islamic Financial Services Board and the Finance Office of the Presidency of Türkiye to bring together esteemed representatives in Islamic finance in Istanbul Financial Centre,”
The forum she adds, is a testament to the power of cooperation and shared vision between the organisations, “Together, we are creating a platform to deepen Türkiye’s alignment with global Islamic financial standards and to strengthen the ties between the IFSB and our country’s participation finance sector. By building on this collaboration, we can explore avenues that will bolster the stability, resilience, and sustainability of our financial systems.”
Recognised as “participation finance” in the country, the forum marked a significant step toward strengthening collaboration and reinforcing Türkiye’s role as a dynamic centre for Islamic finance in the region. Among the high-profile speakers are senior representatives from the IFSB, Central Bank of Türkiye, Bank Al-Maghrib, Capital Markets Board of Türkiye, and Insurance, and the Private Pension Regulation and Supervision Board of Türkiye.
As the standard-setting body for the global IFSI, the IFSB’s involvement in the event reinforces its commitment to support Türkiye’s regulators and market institutions in fostering a resilient and prosperous participation finance framework. Over the past 20 years, the IFSB has developed over 40 industry standards and guidelines across banking, capital markets, insurance, and cross-sector finance, tailored to meet the unique needs of Islamic finance.
Dr Ghiath Shabsigh, Secretary-General of the IFSB remarked, “As Türkiye’s participation finance industry sector approaches systemic importance, its potential impact on the domestic financial system becomes increasingly significant. In alignment with its ambition to become a regional and global hub for Islamic finance, Türkiye’s national participation finance agenda is both timely and crucial,”
“We thank CBFO and TKBB for inviting IFSB to Türkiye, which provided us with the platform to explore avenues for knowledge exchange and collaboration. It reflects our shared commitment to advancing a financial system that is inclusive, sustainable, and resilient – strengthening its role within both national and global frameworks.”
Earlier in the day, a workshop on Liquidity Risk Management Tools for participation banks, gathering participants from CBFO, TKBB, Central Bank of the Republic of Türkiye, participation banks and other local institutions. This workshop included updates on IFSB’s initiatives around climate-related financial risks and sustainability—an increasingly critical area as Türkiye faces significant climate-related challenges in the region.
