Fatma Çınar: The sessions are particularly important for Turkey's participation finance ecosystem

A joint capacity building program titled "IILM-TKBB Capacity Building Program" was held yesterday in collaboration with the Participation Banks Association of Turkey (TKBB) and the International Islamic Liquidity Management Corporation (IILM).

According to the statement made by TKBB, the one-day program was organized to increase knowledge and information sharing among Turkish participation banks, financial institutions, and industry representatives in the field of Islamic liquidity management.

The capacity building program was conducted in three main sessions, featuring presentations on liquidity risk management from the perspective of a regulatory authority by the Central Bank of the Republic of Turkey (TCMB), an overview and challenges of Islamic liquidity management tools offered to participation finance institutions in Turkey by Albaraka Türk Participation Bank, and finally, the IILM sukuk market as a cross-border liquidity management solution by the IILM.

In the statement, IILM Chief Executive Officer (CEO) Dr. Umar Oseni, whose remarks at the event were included, stated: "IILM welcomes the recent developments that enhance the ability of participation banks in Turkey to manage their liquidity and further grow the domestic market. There is no doubt that Turkey's advanced infrastructure and robust participation banking sector, when supported by active communication between the public and various key local and international stakeholders, will be an attractive investment market for potential investors and will position the country as a hub for Islamic finance."

TKBB Director Fatma Çınar expressed her satisfaction with the productive interaction throughout the program, as well as the provision of an ideal platform for all participants and speakers to exchange ideas and experiences, particularly regarding Turkey's liquidity management market.

Stating that the sessions at the event were particularly important for Turkey's participation finance ecosystem, Çınar noted the following:

"The program highlighted the opportunities available in the domestic market and the challenges faced, and evaluates what can be done to increase the total market share of participation banking in Turkey's overall banking sector, which is currently 8.6 percent, to 15 percent by 2025. We believe that the program will contribute to supporting the development of Islamic capital markets with all their elements, while addressing the innovative structures in the sukuk market, which has gained significant momentum in our country in recent years. Specifically, in the period from 2010, when the first sukuk issuance was carried out by our participation banks, to October 2023, domestic sukuk issuances totaling 368 billion TL were realized, while foreign currency-denominated sukuk issuances amounting to approximately 5 billion US dollars and 2 billion Malaysian Ringgit (MYR) were carried out. In addition to these issuances, the Ministry of Treasury and Finance carried out sukuk issuances totaling 294 billion TL between 2012 and 2023, as well as issuances based on 3 billion dollars, 4 billion euros, and 233 tons of gold."

According to the information provided, the IILM-TKBB Capacity Building Program was attended by approximately 80 finance experts from Turkey and around the world, as well as relevant stakeholders including public authorities, local and international financial institutions, participation banks, association organizations, and experts in the field.

News Source: 12punto