EVENTS - IFSB Istanbul April 6, 2011 - In search for a global standard in Islamic banking

Islamic banking is growing rapidly in the aftermath of the global financial crisis, but it desperately needs a global set of standards that every country and institution accepts. Speaking to the Hürriyet Daily News in Istanbul, an expert says the Turkish Central Bank might ‘take the lead’ in this effort. ‘Risk has no religion,’ says Khalid Ferdaus Howladar of Moody’s, adding that he likes the Turkish term ‘participation bank’.

 

Khalid Ferdaus Howladar of Moody's (third from L) is seen on stage with other officials including Turkish Central Bank Gov. Durmuş Yılmaz (third from R) in Istanbul during the 'Seminar on Managing Liquidity In The Islamic Financial Services Industry' held April 6, 2011. AA photo

Turkey may not be ready to take a prominent place in the world of Islamic finance due to the ongoing political tension on religion’s role in the society, but an expert says Islamic finance needs input from the nation on how to proceed.

Noting the often-contradictory interpretations of the principles of Islamic banking, Khalid Ferdaus Howladar, the vice president and senior credit officer of Moody’s in the Middle East, suggested that the Turkish Central Bank might “take the lead” in establishing a global standard that would help Islamic banking become more transparent. (full story)

BANKING - ALBARAKA TURK - Turkish participation bank executive warns on Central Bank move

'The banking sector grew by 20 percent in 2010 while the credit expansion was around 35 percent,' says Albaraka Türk General Manager Fahrettin Yahşi.. Hürriyet photo

The Turkish banking sector will shrink this year if the Central Bank increases the required reserve ratio for banks in a bid to control the already-high credit expansion, said Fahrettin Yahşi, general manager of the Albaraka Türk Participation Bank, a Turkish lender operating on Islamic banking terms.

The credit expansion has one negative and one positive main effect, Yahşi said: contribution to growth and the risk of boosting the current account deficit. He spoke with the Hürriyet Daily News & Economic review after a meeting to launch the lender’s cooperation with Istanbul’s Esenler district municipality for a banking card for residents. (source)

GENERAL - Turkish economy undergoes resilient growth

LONDON: The Turkish economy should grow at 5 percent in 2010 and the country’s public debt to GDP is expected to stabilize at 47 percent according to Durmus Yilmaz, the governor of the Central Bank of Turkey. 

“Officially the GDP growth forecast is 3.5 percent, but it will probably be higher than that, nearer to 5 percent,” he explained in a recent interview with Arab News.