Presidential Circular on the "Participation Finance Strategy Document (2022-2025)" Published in the Official Gazette
Presidential Circular No. 2022/16 on the "Participation Finance Strategy Document (2022-2025)", which was prepared with the coordination of Finance Office of the Presidency of the Republic of Türkiye and the active participation of all relevant stakeholders, was published in the Official Gazette dated October 5, 2022 and numbered 31974.
The “Participation Finance Strategy Document” (PFSD), which is the first national strategy document of our country in the field of participation finance and whose preface written by H.E. President Recep Tayyip Erdoğan, is a road map to position Türkiye as the leading country in participation finance.
As the participation finance is one of the pillars of the İstanbul Financial Center, the PFSD was prepared for objectives of operating in compliance with the tenets of participation finance, creating viable and realistic solutions to various structural problems, reaching its deserved place in the financial system and effectively supporting the Türkiye Economy Model.
A model specific to Türkiye has been created
During the preparation process of the PFSD, the successful practices and strategic steps in abroad were examined in detail, and a model specific to Türkiye was created. In this framework, the Stakeholder Suggestion Form was prepared to receive the opinions, views and suggestions of the participation finance stakeholders, and shared with 89 institutions and organizations as well as 73 experts in their fields. In addition, 8 priority areas were determined and working groups were formed in these areas. In the working groups, weekly meetings were held with a total of 45 members from different institutions and organizations for 6 weeks. With all the experience gained in this whole process, the preparation process of the PFSD was completed.
In the scope of the PFSD, which was prepared with the vision of creating a financial model that will play a leading role in the world and effectively support the Türkiye Economy Model, the studies have been completed within the mission to implement an inclusive, sustainable and innovative participation financial system that operates in accordance with the tenets of participation finance and considers the goal-oriented principles.
5 main goals and 18 objectives determined with the PFSD
In relation to the PFSD, it is aimed to determine the action items that will put the work in the field of participation finance carried out between 2022-2025 on a common ground, and the mechanism of the coordination board and groups to manage the implementation, follow-up and evaluation processes of these action items.
The strategy document was designed around 5 main goals and a total of 18 concrete objectives. These strategic objectives were determined as follows:
• Realizing institutional transformation,
• Establishing supportive mechanisms,
• Forming a holistic fiqhi governance structure,
• Ensuring the development of human capital,
• Increasing positive perception, awareness and participation financial literacy.
Within the scope of these strategic objectives, 84 action items were determined.
The Coordination Board of Participation Finance Strategy Document to be established
The Participation Finance Strategy Document Coordination Board will be established in order to ensure the coordination between institutions and organizations in the implementation of the action items in the PFSD and for high-level assessment of the feedback from the Action Plan Implementation and Monitoring Groups. The members of the board, which will meet under the chairmanship of the President of Finance Office of Presidency of the Republic of Türkiye, will consist of executive managers of the institutions and organizations directly related to PFSD and will meet at least every four months. In addition, the Action Plan Implementation and Monitoring Groups, consisting of representatives of responsible and relevant institutions and organizations, will be formed for the realization of the strategic goals and objectives in the PFSD. These groups will meet every three months.
As Finance Office, we aim to find realistic and applicable solutions to the structural problems of the participation finance system, and to build a financial structure that will contribute to Türkiye's financial independence, strong, sustainable and inclusive growth, with the roadmap laid out within the scope of the PFSD. In addition, one of our important goals is to make the İstanbul Financial Center as a regional and global participation financial hub.
Click here to access the Participation Finance Strategy Document.
Click here to access the Presidential Circular published in the Official Gazette.