Participation Finance magazine interviewed President of Finance Office of Presidency of the Republic of Türkiye Prof. Dr. Göksel Aşan
Participation Finance magazine interviewed President of Finance Office of Presidency of the Republic of Türkiye Prof. Dr. Göksel Aşan. Mr. Aşan indicated that participation finance, which emphasizes participation, production, moral values and risk sharing, has a substantial potential to appeal not only to Islamic societies but to all humanity.
The main purpose of the Finance Office is; a new financial system establishment in Türkiye that is supportive of production / social development, sustainable and integrated with the world. Accordingly, the Finance Office has identified two main focal areas for itself, particularly in terms of financial strategies and within the scope of the IFC project:
The first one is the development of participation finance, which have not reached a sufficient level in Türkiye. Our current financial system is largely based on banking. Parallel to this, participation finance in Türkiye , has focused on products for banking. As President Recep Tayyip Erdoğan emphasized in the “New Horizons in Alternative Finance” conference that we held on September 9; this system should be separated from banking and develop more innovative and alternative financial products.
As the second, in line with its objectives another major focal point of the Finance Office is financial technologies (FinTech). The endeavours in this area are expected to both create a new market in the field of FinTech and enable the development of risk-sharing and asset-based financial products as mentioned before.
It is a fact that the current financial system can no longer be maintained after the 2008 global crisis and it is thusly accepted by the main actors involved. I can say that we will witness concrete steps towards the establishment of a new global financial architecture in the near future.
Here, I would like to underline again that IFC; beyond being a construction project, is the idea of being not only regional but also a global financial center that is participation finance and FinTech-based. Thus, participation finance will have a very significant role in making İstanbul one of the global financial centers. İstanbul is already meeting many conditions to become a participation finance center, with its cultural heritage, geopolitical location, economic size and hinterland. Integrating the driving force of the IFC Project in this new financial architecture framework and the existing participation finance structure more with alternative finance areas such as sustainable finance, socially responsible finance, green finance and financial technologies will speed up İstanbul’s becoming a global participation finance center.
It is expected that foreign banks, fund companies, investment institutions and the financial units of large-scale international companies will come to the IFC as well as domestic regulatory / supervisory agencies, financial institutions and organizations. During our business trips abroad, we can see that there is a great interest for the İstanbul Finance Center. These institutions / organizations, which will come to İstanbul from all over the world and from all areas of the financial sector, will create an important synergy in the region and globally.