The interest-free baking sector, extensively often known as participation banking in Türkiye, goals to extend its market share to 10.6% subsequent 12 months, Participation Banks Association of Türkiye (TKBB) Chairperson Osman Çelik mentioned Thursday.
“We aim to increase our market share to 10.6% in 2023 by including digital participation banks in the participation banking ecosystem,” he famous.
Çelik advised Anadolu Agency (AA) that they purpose to extend the employment price with the expansion of the market share and features within the variety of our prospects in 2023.
As participation banking, the market share, which was 5% in 2017, reached 8.6% as of September 2022 and the asset dimension elevated to TL 1.1 trillion ($59 billion), he added. “From the top of final 12 months to September of this 12 months, the entire variety of branches elevated by 3.4% to 1,356 and the variety of our personnel elevated by 1.6% to 17,420, the chairperson apprised.
“Our share of the number of branches in the banking sector was 12.2%. Our share in the number of personnel increased to 8.5%. Thus, we achieved growth above the sector in 2022. We expect this rise in the sector in the coming year as well as plan to continue our work without interruption,” he added.
Terming 2022 as a “difficult year” throughout which people and establishments labored laborious to eliminate the devastating results of the COVID-19 pandemic, Çelik mentioned that the Russia-Ukraine battle critically impacted the worldwide financial system and provide chains.
He said that international logistics couldn’t meet the demand adequately and there have been provide issues, saying: “We have seen serious global inflation and a shift in economic markets toward recession because of the impact of the war on raw material prices.”
“Türkiye is trying to get a bigger share from the trade routes that are switching from China in this process. In order to maintain its economic growth, it focuses on employment, production and exports,” he added.
Underscoring that participation banks, which function inside the ideas of Islamic finance, contributed to financial development in 2022, Çelik mentioned: “Under the roof of the TKBB, we also made special efforts to ensure that the participation finance model achieves sustainable growth and that the sector offers world-class financial products and services.”
“We intensively worked for the development of our sector that will contribute to the country’s economy,” he mentioned.
“When solely profit-oriented business fashions misplaced momentum, the participation finance system, with its distinctive construction, strengthened its place as a sustainable and progressive different inside the ongoing current economies,” Çelik added.
Commenting on the anticipated contributions of the Istanbul Finance Center (IFC), which is anticipated to open subsequent 12 months, Çelik mentioned: “The IFC will increase the attraction of international institutions, enable the ecosystem to develop rapidly, and will be one of the important centers in the formation of participation finance and new financial architecture.”
“Considering both the potential of participation finance and the fact that IFC will become a global financial center, we can make Istanbul an international center in participation finance, with the advantages of its geopolitical position,” he added.
