Erdem Başçi: Turkish-Austrian economic relations in a European and international context Keynote speech by Mr Erdem Başçi, Governor of the Central Bank of the Republic of Turkey, at the meeting of “Turkish-Austrian economic relations in a European and international context”, hosted by the Central Bank of the Republic of Austria, Vienna, 18 March 2013. *  *  *  Distinguished Participants, I would like to start by thanking Ewald Nowotny, the Governor of Oesterreichische NationalBank for hosting the meeting on the “Turkish-Austrian Economic Relations in a European and International Context”. My colleagues from the Central Bank of the Republic of Turkey and myself are pleased and honored to take part in this important event. After this meeting, opening ceremony of the Exhibition titled “Contemporary Turkish Painting and Printmaking in the Republican Era”, which is composed of some examples from our Bank’s collection, will take place. It is my pleasure to invite you all to the opening ceremony which will take place this evening at 7:00pm. In my speech, first I will share a few observations about the increasing importance of emerging market economies (EMEs) in the global system. Then, I will talk about financial stability in EMEs in general and Turkey in particular. Finally, I will conclude with the developments regarding the economic relations between Austria and Turkey. Distinguished Guests, The share and significance of EMEs in the global economy has been on the rise. The share of EME exports in world total exports increased from 13% in 2000 to 23% in 2010.

It can also be enhanced to become a multi-currency investment platform to provide a marketplace for local and international investors to invest in real economic activity and projects denominated in various currencies and financed by Islamic banking institutions from different jurisdictions. This will be a first of its kind shared global platform for Islamic finance. In facilitating cross-border transactions, the IAP will also contribute towards drawing new foreign investors while also allowing for participation in the financing of projects outside the country. The IAP, together with the existing components of financial intermediation will form a more complete, and yet mutually complementary financial ecosystem. To ensure its success, there has to be greater awareness and understanding on the key features of the IAP and its embedded mechanisms by all the stakeholders. Of importance is for Islamic banks, investors and entrepreneurs to have a clear understanding on the risk and return relationships that are embedded in the variations of Shariah contracts used in such investment account products. Expectations need to be aligned with the various approaches adopted to managing these relationships according to the contractual and operational requirements. It is also paramount for Islamic banks to uphold the best practices in the conduct of discharging their fiduciary duties and in performing its administration. Of importance is the required due diligence, performance monitoring, suitability assessment and investment management. This would ensure that the IAP is always a trusted medium of investment that is transparent and competitive in providing a seamless experience for investors.