Servet Bayindir: Strong legal framework is essential for Islamic finance

Establishing a strong legislative framework is of critical importance for the development of Islamic finance, Servet Bayindir, Vice Chairman of the Economic Policies Board under the Presidency of Türkiye, said at the 3rd Islamic Finance Forum in Baku, Report informs.

Bayindir noted that both Türkiye and Azerbaijan, like the rest of the world, need legislation and financial instruments that are compatible in both substance and form.

"It is a fact that Islamic economics and finance can no longer be ignored. The current financial system, architecture, instruments, and models have reached their limits globally. There is a need for new instruments and models. Islamic finance already offers people various tools to manage their money, investments, and funds, both globally and in our countries. At the same time, it provides new instruments that meet the needs of those seeking funding and investment in a manner aligned with human nature, economic realities, and public benefit," he said.

The official added that internationally recognized principles, standards, and legislation already exist for the implementation and harmonization of Islamic finance.

Bayindir highlighted the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) as one of the most important organizations in the field. He also referred to the Participation Banks Association of Türkiye, which plays a regulatory role in the Turkish banking sector within the framework of international standards.

"I hope that this cooperation and communication will soon produce valuable outcomes and products across all our countries," he stated.