Alternatif Finans

Conference on New Horizons in Alternative Finance held


"New Horizons in Alternative Finance: Cross-Border Liquidity, Green Finance and Socially Responsible Finance” Conference, organized in cooperation with Finance Office of Presidency of the Republic of Turkey and Marmara University, was held at Marmara University Sultanahmet Complex on September 9, 2019, and the President of Turkey Recep Tayyip Erdoğan honoured the meeting with his presence.

Conference, began with President Recep Tayyip Erdogan's keynote speech, brought together important names from Turkey along with many specialists from around world, academics and representatives of markets to open new horizons for alternative financing and to share new ideas and objectives.

Conference organized with the support of Borsa İstanbul and Turkish Airlines and the welcome speeches given by President of Finance Office of Presidency of the Republic of Turkey, Prof. Dr. Göksel Aşan and Marmara University Rector Prof. Dr. Erol Özvar.

"We will bring our country to the place it deserves in alternative finance," said President Recep Tayyip Erdoğan.

President Recep Tayyip Erdoğan, who gave the keynote speech of the conference, said that the issue of alternative finance will bring a new breath to the economy. President Erdoğan said that Turkey has to go forward continuously in economy, as in every field, and in its integral part, financial system, as well as it has to create its own models.

President Erdoğan said he believes that a system based on interest will be replaced by a new financial architecture in which participation and risk sharing are essentials in the future world. Explaining that alternative finance has become widespread, adopted and deepened in the world, Erdoğan said, "Hopefully, we will take bolder and more determined steps in alternative finance in the coming period, and bring our country to the place it deserves in this field."

"We plan to commence the İstanbul Finance Center project at the beginning of 2022 at the latest."

Emphasizing that İstanbul Finance Center will become an important brand in a short time, President Erdoğan continued his speech with these words: “I believe that the region will be the only attraction center especially in the fields of participation finance and financial technologies. We expect this project to be implemented at the beginning of 2022 at the latest with the support and efforts of our relevant institutions. "

Stating that participation finance, which is a financial model that takes into account sharing, production and moral values, is based on risk sharing and wealth, President Erdoğan expressed that he believes that this model, which takes universal moral values, together with Islamic sensitivities into consideration, will solve all the problems of humanity.

In his speech, President Erdoğan said: "From the beginning, they always say participation banking. I always opposed this. Because there is no such notion as participation banking. If it is an interest-free system, here's what we say now that this is called: "Participation Finance System".

In his 11th Development Plan, President Erdoğan underlined that they have set important goals to improve the current condition of the participation finance, especially by increasing the variety of products and services and developing human resources. Pointing out that another important factor in the development of participation finance is meeting the need for human resources trained in this field, President Erdoğan said:

"I believe Marmara University Institute of Islamic Economics and Finance, which has been established, is an important step in this direction. These approaches will add much to Turkey’s success in economic development, which will complement the series of success in other areas".

Göksel Aşan: “Alternative Finance will Support Real Sector and Economic Growth”

Prof. Dr. Göksel Aşan stated that alternative finance will contribute to a more balanced structure of the financial system and will support economic growth with the real sector.

Noting that they are trying to implement projects that are compatible with the goal of increasing the share of the non-banking financial sector, including alternative finance, in the speech of Mr. Aşan, “I would like to emphasize here that ‘participation finance’, which is a financial model prioritizing sharing, production and moral values, is a candidate to be one of the most important actors of alternative finance. The Institute of Islamic Economy and Finance, established at Marmara University in cooperation with our Finance Office, will provide the scientific infrastructure for new products and services, and support both the industry and our country with academic studies, reports and projects, beyond contributing to the development of human capital in the field of participation finance”.

Mentioning that the developments in the field of financial technology play a substantial role in the interest of alternative finance worldwide and the development of new tools, Mr. Aşan said: "The possibility of performing interpersonal financial transactions without intermediaries and online contributed greatly to the development of alternative financial instruments such as crowdfunding, personal debt and private venture capital".

Prof. Dr. Erol Özvar stated that alternative financial methods are necessary to build a new fair, effective and comprehensive financial system.

Alternative financial instruments should be developed to contribute to the sustainable economy

After the welcome and keynote speeches, the conference continued with three different sessions titled “New Horizons in Cross-Border Liquidity Funding”, “New Horizons in Green Finance” and “New Horizons in Socially Responsible Finance”.

The "New Horizons in Alternative Finance" Conference, which was held in current conditions where the needs of the financial system differed, brought together many academics and experts to open new horizons in alternative finance and share new ideas and goals. At the conference, it was emphasized that by developing tools such as crowdfunding, peer to peer (P2P) financing, responsible finance, new capital instruments, interest-free bonds, it will contribute to sustainable economic development.

New Horizons in Cross-Border Liquidity Funding Session

The first session of the conference focused on cross-border liquidity and mega-bank project. In the session, discussed methods are developed by the participation financial industry to ensure a stable economy and prevent any liquidity shortages was discussed and the idea of creating an effective participation money market at the international level was underlined.

The keynote speech of the session was given by KTO Karatay University Faculty of Economics and Administrative Sciences, Department of Islamic Economics and Finance Prof. Murat Çizakça. To the panel, moderated by Finance Office Unit Manager Dr. Tarık Akın, International Islamic Liquidity Management Corporation (IILM) Senior Vice Chairman Lee Wan Mone, Prof. Obiyathulla Ismath Bacha from International Center for Education in Islamic Finance (INCEIF) and Assoc. Prof. Ahmet Şuayb Gündoğdu from Istanbul Sabahattin Zaim University, Islamic Development Bank attended as speakers.

New Horizons in Green Finance Session

In the second session of the conference, it was determined that if the finance does not aim to create sustainable value in the economy, consequently it will be unstable and deviate from its ultimate objective of sharing more prosperity. Accordingly, the answer to the question of how to reconstruct a strong, comprehensive and sustainable growth was sought. It is emphasized that participation finance is an effective instance of responsible finance.

The keynote speech of the session was given by Dr. Ma Jun, the Chairman of the China Green Finance Committee. To the session, moderated by Prof. Dr. Tahsin Özcan from Marmara University, European Bank for Reconstruction and Development (EBRD) Deputy Country Director Şule Kılıç, Prof. Dr. Mehmet Asutay and Dr. Dalal Aassouli from Durham University attended as speakers.

New Horizons in Socially Responsible Finance Session

The third session of the conference focused on the future role of the Belt and Road Initiative (BRI) in achieving sustainable development objectives. Information was given on the potential of the Belt and Road Initiative in the green finance system and the basic financial instruments it uses.

The last session, in which the keynote speech was given by Islamic Development Bank Chairman Sami Al-Suwailem, moderated by Marmara University Rector Prof. Dr. Erol Özvar. Al Maali CEO Dr. Mohamed Wail Aaminou, Sahba Sobhani from the United Nations Development Programme (UNDP) and Hazik Mohamed from Stellar Consulting in Singapore attended as speakers.

On the other hand, the Finance Office continued to support the development of forestry and green tissue, and donated saplings as a gift on behalf of the participants, as in other events organized so far.

Speech of President Erdoğan