Mehmet Şimşek, the Deputy Prime Minister of Turkey, said that his country will continue working to transform Istanbul into a global financial center and a crowdfunding center. He explained that there is a possibility to raise the crowdfunding Islamic sector from the two billion US dollars to 3.5 trillion dollars around the world during the next five years.
Şimşek declared that his government continue working to make Turkey one of the most benefit countries from this possibility, stressing on the necessity to develop the crowdfunding system in the country because of its great benefits on the Turkish economy.
Government facilities to revitalize the banking sector
The assets of the participatory banks reached about 120 billion Turkish liras (39 billion dollars) at the end of the last year, with a share of 5.1% of the Turkish banking sector.
The participatory banks aim to raise the share to about 15% by 2025. In this context, the minister noted that the public sector supports the participatory banking sector, where the state banks "Ziraat Bank" and "Vakıf Bank" have already started their activities in this sector.
To reach this goal, the Turkish Treasury consultancy issued Turkish lira and foreign currency instruments, which have reached 15 instruments till now. These instruments achieved funding which have increased two billion Turkish liras (650 million dollars) until this October.
The liquidity problem is arising as the biggest problem facing the participatory banks, but the Turkish Central Bank implementations facilitated to a far extent the liquidity challenges faced by these participatory banks.
Şimşek concluded his speech by saying: "The crowdfunding sector in Turkey attracted the attention of the world's leading financial centers such as London, Dubai, Hong Kong, and Luxembourg. Moreover, the investment in this sector continues increasing," adding that there are new markets which begun to emerge in the recent times after the evolution of Australia, South Korea, Philippines, and Azerbaijan in this sector.