Participation finance department established under presidency

The Turkish presidency is setting up an office to deal with the growing sector of participation finance, according to an official notice published on Feb. 8.

The department within the Presidential Finance Office will focus on raising awareness of participation finance and developing strategies in the field, said a presidential decree published in the Official Gazette.

It also aims to boost cooperation among public institutions, the private sector, universities, and NGOs so that Islamic finance can be improved.

While introducing new financial instruments to the system in the field of participation finance and developing financial products, Turkey is eager to strengthen its position in international financial markets.

Last year Turkey completed a legal infrastructure on participation banks to help them provide services for their customers in line with interest-free finance principles.

Over the last 20 years, the interest-free banking sector has developed rapidly worldwide.

Turkey has positioned itself as a hub for participation banking and Islamic finance.

Last year, the Moody's credit rating agency announced that Turkey's Islamic banking assets are set to double within a decade as government initiatives drive growth in the sector.