Turkey’s Prime Ministry has established an Interest-Free Finance Coordination Board (“Board”) to support improvement of the country’s interest-free and Islamic Finance sectors, as well as to coordinate developments in the banking and insurance sectors. The interest-free and Islamic Finance sectors are intended to support wider development and stability of Turkey’s overall financial sector, contributing to the country’s aim to be an international financial center. The Board was established by a Circular numbered 2015/17, published in Official Gazette number 29563 on 15 December 2015 (“Circular”).

Key aspects of the Board’s framework and functions include:

  • The Board’s Chairman will be a Minister affiliated with the Treasury Undersecretary. The Board will include representation by the following entities:
    • Development Ministry Undersecretary.
    • Treasury Undersecretary.
    • Finance Ministry Undersecretary.
    • Turkish Republic Central Bank Undersecretary.
    • Banking regulatory and Supervision Agency Undersecretary.
    • Head of Capital Market Board.
    • Principal of İstanbul Stock Exchange Inc..
    • Head of Turkey Participation Banks Union.
    • Head of Participation Insurance Association.
  • The Board will convene at least three times per year, at the Chairman’s request.
  • If necessary, the Board can establish sub-committees, committees, consultancy groups, and temporary and permanent working groups. These can include representatives from the entities noted above, as well as representatives can be invited to participate from universities, non-governmental organizations, occupational groups and the private sector.
  • The Treasury Undersecretary will ensure co-operation and coordination between the Board and related public institutions, organizations, private sector representatives and non-governmental organizations, as well as monitor enforcement and execution of the Board’s decisions by relevant institutions.

Please see this link for the full text of the Circular (only available in Turkish).