“I hope we will build the ‘Century of Türkiye’ together by overcoming the inflation issue, which we have felt for a while,” he said on Oct. 3 at a publicity event for the Participation Finance Strategy Document.
For the last 8-9 years, some circles have tried to attack Türkiye including the attempt for coup d’etat, aiming to make the country unmanageable, he said.
“The last bullet of these sneaky attacks hit our economy, but an unforeseen situation arose. Our struggle against the traps set against us has made us stronger. On the other hand, unexpected crises in the world revealed to us all the weaknesses of those who set these traps,” Erdogan stated.
In the meantime, the global economic crisis continues to wreak havoc on the world, constantly causing new problems and the financial sector is one of the areas most affected by the problems, he said.
But the financial system also has problems, distortions and deadlocks beyond this, Erdogan emphasized.
“To put it more clearly, the financial system, whose main task is to be the locomotive of economic growth by directing savings to the right investments, can no longer fulfill this task. At this point, an economic order in which the financial system feeds production and trade has been replaced by an unhealthy and unsustainable structure in which almost all other sectors feed the financial sector,” the president said.
He stressed that the Turkish government also provides all kinds of support to the new financial architecture, which is an alternative to the existing financial structure that has become unsustainable.
He underlined that the document would significantly contribute to the efforts aimed at developing alternative instruments for the financial system, which he noted was at the center of global crises.
Participation finance includes participation finance institutions, participation capital markets, participation insurance and social finance, and these instruments bear a potential for rapid development, growth and enrichment with new derivatives, President Erdogan stated.
The government in advance launched the preparations for the strategy document that the country needs to achieve its purpose, he said and added, “The purpose of our Participation Finance Strategy Document is to build a legal, administrative and corporate infrastructure for participation finance in the 2022-25 period while bringing about a significant transformation for the current structure.”
“Just like every strategy document of ours, we have carried out this work with the participation of a wide range of stakeholders and a detailed preparation process as well,” he stated.
Stating that making changes in the name of participation banks may change the perception, Erdogan said, “The perception that participation financial institutions are no different from banks has settled in the society.”
The name of the participation bank may be changed to participation financial institution and only by changing the name will separate participation finance and banks in the eyes of the society, he added.