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With the support of the relevant institutions, PBAT and the administration, a number of
universities have developed Islamic finance master and PhD programmes, which includes
Sakarya University, Istanbul University and Sabahattin Zaim University. Other universities
have also taken initiatives to develop various programmes. In this regard, KTO Karatay
University has opened Islam Economics and Finance bachelor degree program for the first
time in Turkey ). The Higher Education Council has been positive in
facilitating such programmes through the approval process, while research funding
institutions such as TUBITAK have been positive in funding Turkish academics for their Islamic
finance related research in overseas countries. With such positive developments, a large
number of academics have slowly moved into researching Islamic finance. Furthermore, a
number of technocrats and academics have been to Malaysia for academic and professional
training and research activities. Moreover, establishment of World Bank Global Research
Centre in Istanbul in 2013 has been contributing to the development of academic and
professional research base in Turkey. Lastly, in recent years, a number of academic
conferences has been organised in Turkey whereby Turkey is now well located in the Islamic
finance academic and education map.
A number of initiatives have also been taken to develop talent and professionalism through
various certification programmes either through individual initiatives or institutional
initiatives. Turkish Islamic banks have come out strongly in support of professional
certification as well as academic programmes, and have encouraged their staff to register to
such programmes.
4.11.8. Summary and Conclusions
Turkey is the second largest economy in the Muslim world with huge potential to be a regional
economic leader, and this potential is also true for Islamic finance. However, due to a number
of institutional barriers, until recently the potential of Islamic finance in Turkey has been
sluggish. With the new institutional identity being transferred from SFH into banks with the
Banking Law of 2005, Participations Banks have gained full recognition, and this has affected
their performance in a positive manner. The development of participation banking has been
relatively better with five participation banks claiming about a 5% market share in the banking
system.
The proactivity of the government indicates the essential importance given to the development
of the industry. Such positive change is reflected in the establishment of two state-owned
Islamic banks, Ziraat Participation Bank and Vakif Participation Bank, which were licensed in
2015 and 2016 respectively. It is worth noting that all stakeholders play important roles in
framing necessary policies and strategies related to the development of participation banking
in the country, which is evidenced also by the formation of a particular secretariat within the
President’s Office in late 2015 to coordinate the policies towards Islamic banking in Turkey.
The suggestions made in the 2013 Workshop report have been essential in developing the
necessary policies to provide a fair playing field for Participation Banks in Turkey.
Participation based financial development is now considered as an essential component of
Istanbul International Financial Center Program. Therefore, a number of academic,
professional and training programmes have been initiated in the country.