Author
YURTSEVEN, Muhammet
Publication Place
University of Afyon Kocatepe -
University of Afyon Kocatepe
Subject
Islamic law
Type
Book
Language
ara,eng
Digital
Yes
Manuscript
No
Library
Leitir Library
Library Asset ID
ISSN: 2757-8399, EISSN: 2757-8399, DOI: 10.52637/kiid.1311272
Record ID
cdi_doaj_primary_oai_doaj_org_article_58413ca96cbe4c7f96ae53c20ffaf2d1
Library Location
DOAJ Directory of Open Access Journals
Notes
Participation finance system, in its most general sense, refers to all financial activities that organize their working procedures and principles according to the participation finance principles inherent in it, in other words, according to Islamic values, especially fiqh, and carry out their activities accordingly. Participation finance system, or interest-free finance system, maintains its stable position in the Turkish economy as of 2023. The institutional work and structural activities of the participation finance industry (participation banking, participation indices, participation insurance) within the Turkish financial market also continue with increasing momentum. According to global Islamic finance reports (Islamic Finance Global Reports), the Islamic finance industry has reached a transaction volume of 4 trillion US dollars in global assets with a growth of 17% by 2022. In terms of institutionalization, approximately 1700 Islamic financial institutions around the world provide services in a wide geography. The number of countries that have legal regulations on at least one area within the borders of the country's legal framework has reached 47, and the number of countries with a central shariah board has reached 19. In terms of knowledge production, the Islamic finance industry continues its existence with 880 information providing institutions, nearly 150 academic journals and nearly 4000 scientific research activities around the world. It can be said that the situation that is valid for the Islamic finance system, which is rapidly growing in terms of total assets on a global scale but has a stagnant appearance in terms of institutional development, is also valid for the Turkish participation finance system. The participation finance system, which started operating in Turkey since the 1980s, currently carries out its activities mainly through participation banking, as it does throughout the world. Despite the positive developments in the Islamic finance system in the world and in Turkey, only two countries (Iran and Sudan) are mentioned that are fully in compliance with Islamic law, and the Islamic finance industry operating in other countries is operated together with a dual mechanism (interest-bearing and interest-free). This situation causes many structural problems due to the lack of a unique legal and legal framework of participation finance. The most important of these is that a sharia mechanism that will contribute to the information infrastructure and accredit Turkey in the international Islamic finance market has not been established. Participation Banks Association of Turkey (TKBB) has established an advisory board in this field, but this structure has not been officially positioned within a legal framework on participation financial institutions, but has only been given legal status based on the decision published by the Banking Regulation and Supervision Agency (BDDK). Since this structure does not have jurisprudential regulation and supervision authority over the participation finance system, it is insufficient to fill this gap, expressed in institutional and principled terms. In this context, the working group included in the Participation Finance Strategy Document (2022-2025) published by CBFO in 2022 under the title "Participation Finance Jurisprudence Governance Structure" has been an important step. In order to support this registered working group and the current administrative structure, the model proposal of the "Katılım Finance Sharia Regulation and Supervision Agency", which will regulate and supervise the Katılım finance system within the framework of Sharia and serve as a supporting organization for the Istanbul Finance Center (IFC), constitutes the main purpose of this study. This proposed model institution is designed to operate in many areas such as international Islamic financial services, Turkish participation finance system, Sharia information, Sharia compliance, Sharia monitoring, Sharia scanning, Sharia auditing, product development and fatwa processes, production and teaching of knowledge required for qualified human value. In addition, modeling the institutional model with the principles of shura, which will ensure that it works with common sense or collective consciousness, can also contribute positively to the discussions about the legitimacy of the participation finance system. International institutional structures were examined with comparative analysis in terms of modeling methods and techniques, literature review was conducted, and field studies provided motivation for the reasons for establishing this model. In addition, the strengths and weaknesses of this model are emphasized and policy recommendations are presented. The participation finance system, also known as Islamic finance system, regulates and conducts financial activities based on the principles of participation finance, including Islamic values such as fıqh. As of 2023, the participation finance system, or the interest-free finance system, has maintained a stable position within the Turkish economy. The institutional activities and structural operations of the participation finance industry (including participation banking, participation indices, and participation insurance) continue to grow at an increasing pace in the Turkish financial market. According to global Islamic finance reports, the Islamic finance industry reached $4 trillion in assets and a transaction volume of 17% growth by 2022. There are approximately 1,700 Islamic finance institutions worldwide, providing services across various regions. The global Islamic finance industry continues to develop in terms of regulatory mechanisms and supervision. Currently, 47 countries have legal regulations in at least one area, and 19 countries have central Shariah advisory boards. In terms of knowledge production, the Islamic finance industry sustains itself with 880 information-providing institutions, nearly 150 academic journals, and around 4,000 scientific research activities worldwide. Despite the positive developments in the Islamic finance system globally and in Turkey, only two countries (Iran and Sudan) are mentioned as fully compliant with Islamic law, while other countries operate with a dual mechanism of interest-based and interest-free systems. This lack of a specific legal and regulatory framework for participation finance causes several structural issues. One of the significant problems is the absence of a sharia mechanism to contribute to the information infrastructure and accredit Turkey in the international Islamic finance market. Although the Participation Banks Association of Turkey (TKBB) has established an advisory board in this field, this structure has not been officially positioned within a legal framework and only acquired legal status based on the Banking Regulation and Supervision Agency's (BDDK) decision. As this structure lacks the authority to regulate and supervise the participation finance system, it falls short in filling the institutional and principled gap mentioned. In this context, the working group titled "Participation Finance Fiqh Governance Structure" within the Participation Finance Strategy Document (2022-2025), published by the CBFO in 2022, represents an important step. The main goal of this study is to propose a model for the "Participation Finance Sharia Regulation and Supervision Institution," which would regulate and supervise the participation finance system within the framework of Islamic principles and serve as a supportive organization for the Istanbul Finance Center (IFC) by providing international Islamic financial services. This proposed institutional model is designed to operate in many areas, including Sharia knowledge, Sharia compliance, Sharia monitoring, Sharia screening, Sharia auditing, product development, and fatwa processes, as well as generating and disseminating the necessary knowledge for qualified human resources. Additionally, modeling the institutional structure based on the principles of collective wisdom or collective consciousness (sûra) can positively contribute to discussions regarding the legitimacy of the participation finance system. The methods and techniques of international institutional structures were examined through comparative analysis, and a literature review was conducted, while field studies provided motivation for the establishment of this model. Moreover, the strengths and weaknesses of this model were emphasized, and policy recommendations were presented accordingly.
Detaylı Başlık
Katılım Finans Sistemine Yönelik Şer’i/Fıkhi Yönetişimle Yapılandırılmış Kurumsal Model Önerisi
