President Erdoğan Said: "We Will Bring Our Country To Where It Deserves To Be In The Field Of Alternative Finance."

The conference which started with an opening speech by Recep Tayyip Erdoğan brought many of the leading names in the finance world together in order to find new ideas, share their goals and pave the way to new horizons in the field of alternative finance.

The event was organized with the help of Turkish Airlines and Borsa Istanbul and its welcoming speeches were given by Republic Of Turkey Head of Presidential Finance Office Prof. Dr. Göksel Aşan and Marmara University Rector Prof. Dr. Erol Özvar.

President Erdoğan Said: "We Will Bring Our Country To Where It Deserves To Be In The Field Of Alternative Finance."

Recep Tayyip Erdoğan who gave the opening speech of the conference said that he will bring a breath of fresh air in the field of alternative finance. In his speech, he said: "Turkey must keep going forward and develop new models in economy and finance just like every other field."

He further stated that he believes in the future the current interest-based financial system will give its place to a risk-sharing based financial system. Pointing out the fact that alternative finance is becoming more common and accepted day by day Erdoğan said; " I pray that we will be able to bring our country to where it deserves to be in the field of alternative finance with bold and determined moves.

"We are planning to launch the Istanbul Finance Center project at the beginning of 2022 at the latest."

He continued his speech by pointing to the fact that Istanbul Finance Centre will be very important in the future and said: " I further believe that this institute will be the center when it comes to Islamic Finance and Financial Technologies in the region. We hope to bring this project to life with the help and care of the related institutes".

Stating that consortium finance which is a financial model based on risk-sharing and existing currency that considers sharing, production, and moral values. President Erdoğan said that he believes this model, which takes universal moral values into consideration rather than being limited to Islamic sensitivities, will solve all of humanity's problems.

In his speech, President Erdoğan said: " People have always been talking about consortium banking. I have always been against that. Because there what people were talking about was not consortium banking. If it is a system without interest only than can we call it “consortium finance system”.

 Erdoğan underlined that they have set important new goals in order to make their wishes in areas of human resources and service variety in the 11th development plan. Pointing out the fact that in order for the consortium finance system to grow, the need for qualified human resources has to be met, Erdoğan said:

 “I see the newly constructed Islamic Economics and Finance Institute as a great step in achieving this goal. These types of outlooks will have an important role in Turkey succeeding in this field as it tries to do in many other sectors. And I hope as soon as the new campus in Maltepe which overlooks the Sea Of Marmara will be  completed, Marmara University will get out of its current confused state and become a great place of learning for both its students and personnel. In order to achieve this, I whole heartedly believe our rector Erol Özvar and his team of engineers and architects will work tirelessly."

Professor  Erol Özvar said: "The search for alternatives to the conventional financial system has increased considerably."

Rector of Marmara University Prof.  Dr. Erol Özvar, in his speech, emphasized that search for alternatives to the conventional financial system of capitalism has increased remarkably in recent years. Rector Özvar said: The profit motives of speculative characters are well criticized in the world. It is much more visible that developed countries try to take over the poor and economically weak countries with high-interest debts or loans, and this leads to protests and the aforementioned searches. The determined implementation of changes, economic and financial measures to promote production and partnerships without resorting to high-interest rates and to ensure fairness in the distribution has become more important than ever. "

Stressing that the institute which was constructed with the help of the government and various private Islamic investors will be the one and only institute to teach Islamic finance, Erol Özvar said: "The institute will not only be a training institution. It will play a major role in conducting academic and social activities, as Turkey has set the goal of becoming a global and regional center for Islamic economics in the field of finance.

Özvar said the institute would offer new directions to alternative economic and financial searches which were often confined to the consortium banking system.

Prof. Dr. Göksel Aşan: “Alternative finance will support real sector and economic growth”

Head of the Presidency Finance Office Göksel Aşan stated in his speech, that alternative finance will contribute to a more balanced structure of the financial system and support economic growth in the real sector. In his speech, Aşan said that they are trying to implement projects in line with the target of increasing the share of the non-bank using the financial sector, including alternative finance. He then continued with: “I would like to point out that‘consortium finance which is a financial model that prioritizes sharing, production, and moral values, is a candidate for being one of the most important actors of alternative finance. The Institute of Islamic Economics and Finance, established in collaboration with our Finance Office at Marmara University, will not only contribute to the development of human capital in the field of consortium finance but it will also provide infostructure for scientific development and support our country's projects as well as its reports”.

President Aşan also mentioned that developments in financial technology play an important role in developing new instruments and attracting worldwide interest. He then added: “The ability to perform interpersonal financial transactions without intermediaries has contributed greatly to the development of alternative financial instruments, such as mass funding, person-to-person borrowing and private venture capital, which tend to grow rapidly in the world. ”

Alternative financial instruments have to be developed in order to contribute to a sustainable economy.

Following the opening speeches, the conference continued with three different sessions which were named “New Horizons in Cross-border Liquidity”, “New Horizons in Green Finance” and “New Horizons in Responsible Finance”.

The first conference which was organized in light of the new financial systems which require different methods brought together many prominent members in the financial community in order to share and discuss new ideas in alternative finance. At the conference, it was emphasized that mass funding, peer to peer (P2P) financing, responsible finance, new capital instruments, and interest-free bonds will be developed in order to achieve sustainable economic development.

“New Horizons in Cross-Border Liquidity Funding” Session

The first session of the conference focused on cross-border liquidity and the mega-bank project. The session discussed the methods developed by the Islamic Finance Industry to ensure a stable economy and to avoid any liquidity shortages with the idea of creating an effective Islamic money market at the international level.

The opening speech of the session was made by Murat Çizakça, Professor of Islamic Economics and Finance at KTO Karatay University Faculty of Economics and Administrative Sciences. Under the moderation of Tarık Akın CBFO Unit Manager the conference was attended by: Lee Wan Mone, Senior Vice President of IILM (International Islamic Liquidity Management), Obiyathulla Ismath Bacha, a professor from INCEIF (International Center for Education in Islamic Finance), Islamic Development Bank representatives and Dr. Ahmet Şuayb Gündoğdu from Istanbul Sabahattin Zaim University Assoc.

“New Horizons in Green Finance” Session

In the second session of the conference, it was determined that if finance did not aim to create sustainable value in the economy, it would naturally be unstable and deviate from its ultimate goal for greater welfare sharing. In this respect, the question of how to rebuild a strong, inclusive and sustainable growth was sought after. Islamic finance as an example of effective responsible finance was touched upon.

The opening speech of the session was made by the Chairman of the Chinese Green Finance Committee. Ma Jun. The session which was moderated by Prof.Tahsin Özcan from Marmara University was attended by European Bank for Reconstruction and Development (EBRD) Vice President Şule Kılıç, Prof Mehmet Asutay from Durham University and Dalal Aassouli.

“New Horizons in Socially Responsible Finance” Session

The third session of the conference focused on the future role of the Belt and Road Initiative (BRI) in achieving sustainable development goals. Information was provided about the potential of the Belt and Road Initiative in the green financial system and the main financial instruments it uses.

The opening speech was made by Sami Al-Suwailem, President of the Islamic Development Bank. The last session which was moderated by Rector of Marmara University. Dr. Erol Özvar was attended by Al Maali CEO Dr. Mohamed Wail Aaminou, Sahba Sobhani of the United Nations Development Program (UNDP) and Dr. Hazik Mohamed from Stellar Consulting of Singapore.