The Prime Ministry's circular on establishing an Interest-Free Finance Coordination Board has been published in the Official Bulletin.
Signed by Prime Minister Ahmet Davutoğlu, the circular reports that the size of financial assets and the high potential achieved by the interest-free finance sector within the last few years brought it to the agenda of various international agencies and the Group of Twenty (G20) which Turkey presided over in 2015.
The 10th Development Plan and 64th Government's Program also focuses on progressing interest-free finance and coordination in this respect. The circular added that interest-free finance is expected to contribute to a better rooted financial sector and support financial stability. "Therefore, in order for faster and healthier improvement of participating banking and insurance as well as the interest-free finance system in general, and to contribute to Turkey's vision of becoming an international finance sector, it was decided that an ‘Interest-Free Finance Coordination Board' will be established," according to the circular.
The Interest-Free Finance Coordination Board will come under the authority of the Treasury Undersecretariat, and will consist of the heads of the Development Ministry, the Finance Ministry, the Central Bank of the Republic of Turkey (CBRT), the Banking Regulation and Supervision Agency, the Capital Market Board, Borsa Istanbul, the Turkish Participating Banks' Union and the Participating Insurance Association. If necessary, the board may establish temporary or permanent sub-committees, consultant groups and work teams.
