Governance in Participation Banking Webinar
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Istanbul Ticaret University organized a webinar on “Islamic Economy and Governance in Participation Banking” in cooperation with the Islamic Economics and Economic Systems Application and Research Center and Istanbul Ticaret University Economics Society.
Deputy Director of the Islamic Economics and Economic Systems Application and Research Center Prof. Dr. Necdet Şensoy and guest speaker, Deputy General Manager of Kuveyt Türk Participation Bank Dr. R. Ahmet Albayrak, focused on the importance of governance in participation banking and related practices in their speeches addressing an audience of students. In addition, Kuveyt Türk Human Resources Business Partner Mr. Muhammet Ali Erdoğan gave information about internship and job opportunities at Kuveyt Türk Participation Bank, and explained that the bank also offers training opportunities.
Prof. Dr. Şensoy mentioned the share of participation banks operating in our country in the sector, introduced international organizations that set standards for mainstream financial institutions and participation finance institutions. He specifically focused on the governance standards of Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) and the draft standard on governance prepared by AAOIFI jointly with the Islamic Financial Services Board (IFSB), and posed questions to Dr. R. Albayrak, who is also a member of the AAOIFI Governance Standards Board.
In his speech about the definition, history and importance of governance, Dr. R. Albayrak touched upon the importance of transparency and accountability, and explained that participation banks operating in Türkiye comply with the banking convention that is valid all over the world, and that the advisory committees and central advisory board in each participation bank are working sensitively on compliance with the principles of participation finance. While pointing out to the importance of public oversight, he said that there is also a body called the “Committee of Principles” consisting of managers within the body of their own bank. In addition, he underlined that they make sure that their employees are knowledgeable and conscious about the principles of participation finance and explained that they conduct internal trainings on this subject.
Prof. Dr. Şensoy posed questions to elaborate on the issues touched by Dr. R. Albayrak, and said that the fact that additional regulations are in force in participation banks in addition to the governance principles complied by mainstream banks, provides assurance to sensitive participation account holders and other social stakeholders, and that this is an added value. However, he emphasized that these additional regulations cause additional costs that must be borne.
Stating that “We must not compromise on the principles of participation finance for the sake of growth”, Dr. R. Albayrak said that their priority is to operate in accordance with their principles.
In the other session of the event, Mr. Muhammet Ali Erdoğan shared some information about Kuveyt Türk Participation Bank in his presentation titled “10 Steps to Reaching from Zero to One” in order to guide the participants about career.
