Recent development

On December 15, 2015, the Prime Ministry of the Republic of Turkey issued a circular on the formation of an Islamic Finance Coordination Committee (Faizsiz Finans Koordinasyon Kurulu) to accelerate the development of Turkey's Islamic finance markets and to strengthen Turkey's goal of becoming an international financial hub. Turkey has already committed to developing Islamic finance and increasing the related coordination in its latest five-year development plan and the new government's program.

The Islamic Finance Coordination Committee will be chaired by the minister responsible for the Undersecretariat of Treasury and will include top financial markets regulators from the Ministry of Development, the Ministry of Finance, the Central Bank, the Banking Regulation and Supervision Authority, the Capital Markets Board, Borsa Istanbul, and the Islamic Banks Association of Turkey. The Islamic Finance Coordination Committee will also consult with non-governmental organizations, academics and professional organizations.  

Conclusion

Turkey has already been active in developing the Istanbul Financial Center initiative to bolster Istanbul's status as a regional and international financial center and supporting the Islamic finance market in Turkey as part of this initiative. The composition of the Islamic Finance Coordination Committee emphasizes Turkey's aim to maximize its coordination at the highest level. As one of Turkey's goals is to diversify its financial markets, the Islamic Finance Coordination Committee will play an integral coordinating role between financial markets regulators and the government to harmonize the Turkish approach to Islamic finance.