2nd International Borsa İstanbul Finance and Economy Conference (BIFEC) was held
2nd International Borsa İstanbul Finance and Economy Conference (BIFEC) was held on October 1-2. The conference attracted a lot of interest from prominent names of economy and finance world.
2nd International Borsa İstanbul Finance and Economy Conference (BIFEC) was held at The Marmara Hotel Taksim on October 1-2, 2015. The main theme of the Conference was "A New Era in Capital Markets", with panels entitled as follows: Banking and Finance, Corporate Finance, Market Microstructure, Behavioral Finance, Asset Pricing, Quantitative Methods, Financial Crises & Contagion, Capital Flows, Ownership Structure, Initial Public Offerings, and Index Performance.
The Conference started with an opening speech by Borsa İstanbul CEO Tuncay Dinç. Emphasizing the importance of creating a financial ecosystem that will influence the real economy more strongly, Dinç went on to say that a more comprehensive structure should be created for retail investors and small and medium sized companies.
Following the opening speech, a panel entitled "Good Finance", chaired by Prof. Vedat Akgiray of Boğaziçi University, was held. Panel speakers were Central Bank of the Republic of Turkey Board Member Dr. Ahmet Faruk Aysan, Capital Markets Board Executive Vice Chairman Tevfik Kınık and Borsa İstanbul CEO Tuncay Dinç. At the panel, Dinç pointed out to the fact that everybody expects news from FED, saying, "We know that when FED increases the interest rates, it will not be by 5-10 basis points, but 0.25 basis points. This is an insignificant figure, but it has tremendous effects since the whole world is in debt. As it will be more difficult to borrow in the future years, on a global basis, it will be more rational to have recourse to the capital markets".
A PATENT MARKET WILL BE ESTABLISHED
Tuncay Dinç said that the exchange business brings marketing and technology together, which means innovation, and talked about Borsa İstanbul's gates opening up to new markets. Pointing out to the fact that Borsa İstanbul Private Market is a meeting point for start-up companies and investors, Dinç went to say, "We will soon establish a Patent Market, and with this, we will ensure that not only companies, but patents too realize their economic value".
"OFFICIALS OF ISRAEL AND PALESTINE EXCHANGES WILL COME TO TURKEY TOGETHER"
Emphasizing that listed companies accelerate institutionalization, Dinç added, "Exchanges are capable of bringing different groups from different countries together. Currently, 64% of the investors in Borsa İstanbul are international portfolio investors. Exchanges can bring together even groups that are politically incompatible. Israel Stock Exchange requested to pay a visit to us, so we asked them to bring the Palestine Exchange along as well, and they will do so. We will organize a ceremony on this occasion, and tell them about our efforts".
Central Bank of the Republic of Turkey Board Member Dr. Ahmet Faruk Aysan said that re-questioning a global system where improvement and development are defined over debt may offer solutions for both the existing structural problems and the search for a more equitable world. All actors, including everyone from the big players of the global economy to ordinary citizens must re-think about money, fortune and debt.
In his speech at the panel, Capital Markets Board Executive Vice Chairman Tevfik Kınık said that a good financial system must contribute to sustainable growth and ensuring financial stability, adding that the balance of global debt and equity finance has imbalanced in favor of debt in the recent years, with a significant decline in initial public offerings. Kınık pointed out that this raises worries about global growth, and therefore structural measures must be taken to improve the market conditions and to encourage public offerings, and went on to say that the arrangements made after the enactment of the new Capital Markets Law and the tax advantages for equity finance are important structural reforms.
Prof. Vedat Akgiray said, "Developments over the last 50 years and the roots of the global financial crisis of 2008 imply that we have to question the current stance and redefine the role of finance in our lives. Continually increasing levels of debt, instabilities caused by complex financial regulation, ineffectiveness of standard monetary policy, negative societal impact of oversized financial industries and new technologies are some of the crucial problem areas to be thought of. We suggest the world community to discuss these issues in search for a model of "Good Finance."
Prof. Reena Aggarwal from Georgetown University was the main speaker of the event. Prof. Aggarwal is a consultant to international organizations such as the International Monetary Fund (IMF), World Bank, OECD and the United Nations. Prof. Aggarwal delivered a presentation on the downsizing of the global economy and the financial markets.
The Conference continued with parallel sessions on banking, deepening of the capital markets, asset pricing, financial novelties and financial crises on the second day.
Students and economic circles showed keen interest in the panels where young research fellows shared their presentations on the capital markets. Selected studies will be announced in a ceremony to be held in the evening.
A total of 15 panels were realized at BIFEC, opened by Borsa İstanbul CEO Tuncay Dinç.