Advisory Committee

Purpose

Advisory Committee was founded according to the “Communiqué on Compliance with Interest-Free Banking Principles and Standards” (Communiqué) dated 14.09.2019 and numbered 30888 published by the Banking Regulation and Supervision Agency to maintain Albaraka Türk Katılım Bankası A.Ş.’s banking activities in compliance with interest-free banking principles.

Composition of the Committee

The Advisory Committee shall consist of at least three full members, provided that they meet the conditions set forth in the Communiqué. The Chairman and Vice Chairman shall be elected by the Committee Members. Committee members are appointed by the Board of Directors.

Functions of the Committee

• Answering questions submitted to the Committee and offering alternative solutions on interest-free banking principles,
• Following up on global developments in the field of interest-free banking,
• Monitoring and analyzing the activities of the Bank and its subsidiaries subject to consolidation systematically in terms of interest-free banking principles,
• Coordinating with the audit unit to audit the compliance of the activities of the Bank and its subsidiaries subject to consolidation with interest-free banking principles,
• Organizing developmental and educational seminars for the Bank’s staff to establish and develop an interest free banking culture within the Bank; ensuring that such trainings are included in routine training programs,
• Representing the Bank in interest-free banking-related activities such as conferences, symposiums, forums and seminars concerning the Advisory Committee and sharing interest-free banking perspectives on issues discussed in such events with bank managers,
• Preparing a summary report on the activities of the Committee, the questions posed to the Committee during the year and the activities and decisions of the Committee and submitting it to the Board of Directors,
• Examining all activities of the Bank and documenting the interest-free banking audit handbook and ensuring that it is approved by the Board of Directors,
• Discussing the issues which the Chairman has opted for examination at the Committee among those issues in the report submitted by the controller to the Chairman and informing the Head Office regarding these issues,
• Approving the interest-free banking principles compliance expectations in the Articles of Association, regulations, forms and policies used by the Bank and also approving the regulations made,
• Approving the standard agreements and contracts in the transactions of the bank with third parties in terms of compliance with interest-free banking principles and taking part in the development and improvement of the mentioned forms, when necessary,
• Determining the interest-free banking eligibility requirements for existing and new products of the bank and its subsidiaries subject to consolidation and expressing an opinion on the documentation (contract, form, procedure, committee, functioning, method etc.) to be prepared in this regard,
• Informing the Head Office of its opinion on the applications made to the Committee,
• Following up the Bank’s operations and reviewing the Bank’s business activities in coordination with the Bank’s management following the interest-free banking perspective at reasonable times,
• Providing and recommending possible interest-free banking solutions for financial transaction problems that do not comply with the principles of interest-free banking, looking for alternative products together with the Bank management to replace products that do not comply with the interest-free banking rules,
• Guiding the employees working in the implementation of interest-free banking transactions in compliance with the rules and principles of interest-free banking,
• Preparing the annual interest-free banking report which shows the degree of compliance with the decisions and directives issued by the Advisory Committee and submitting it to the Board of Directors,
• Preparing annual activity budget and having it approved by the Board of Directors,
• Ensuring protection from interest earnings and distribution of unavoidable interest earnings for charity purposes,
• Publishing periodic practical information on interest free banking principles for the employees and participation account holders,
• Submitting periodic reports regarding the decisions taken to the Advisory Board of TKBB (Türkiye Katılım Bankaları Birliği - Participation Banks Association of Turkey).

Working Principles of the Committee

The Advisory Committee, together with the new Communiqué, will convene at least twice a month and may also meet extraordinarily, if necessary, by ensuring a majority upon the request of the President. The Advisory Committee meetings can be held by physically present members or by some or all members’ participation via the electronic channel.