Islamic banking assets in Turkey to double in 10 years, Moody's says
Islamic banking assets in Turkey are set to double within 10 years as government initiatives drive growth in the sector, a report published Monday by Moody's Investors Service said, APA reports citing Daily Sabah.
The report highlighted evolving regulations and government policy as main factors encouraging the Islamic finance industry to expand.
According to the report, currently, the country's Islamic finance sector is smaller than other large Muslim countries, and its slow start means it has ample room to expand. The sector represented just over 5.8% of banking assets at the end of September 2019, compared to Malaysia (33%) and Middle Eastern countries (15% - 77%).
The Turkish government founded three new state-owned Islamic banks between 2015 to 2019, broadening access and increasing competition.
In February last year the country's Banking Regulation and Supervision Agency (BDDK) granted a banking license to Türkiye Emlak Katılım Bankası (EmlakBank), bringing the number of Islamic banks – known as participation banks locally – to six in the country.
EmlakBank is not an entirely new player. In the aftermath of the foundation of the Turkish Republic, the Emlak and Eytam Bank was established in 1926, the third bank after İş Bank and the Sanayi ve Maadin Bank (Industry and Mining Bank).
The aim of the bank was to support construction projects in order to facilitate social and economic development in the nascent republic. In 1946, the bank's name changed to EmlakBank and it lost its banking license in 2001. Its 405 branches were transferred to state lender Ziraat Bank.
The other five Islamic banks are state-controlled Ziraat Bankası and VakifBank, which received licenses to conduct Islamic banking in 2015 and 2016, respectively, as well as Albaraka Türk, Kuveyt Türk, majority-owned by Kuwait Finance House, and Turkiye Finans.
All six banks operating are members of the Participation Banks Association of Turkey (TKBB). According to TKBB the total assets of these banks stood at nearly TL 206.81 billion in 2018, currently, they stand at TL 286.47 billion, according to the association's official website.
The report also added that a state-funded $2.6 billion Istanbul Finance Center (IFC) scheduled to open in 2022 will be a new catalyst for growth.
Having started in 2009 and currently being developed in Istanbul's Ataşehir district, the IFC has been designed to be one of the world's major financial centers. The landmark project aims to build a larger financial center than the ones in New York, London and Dubai and make Istanbul the center of finance internationally. The report pointed to the development of Islamic finance a key pillar of the IFC strategic plan.
Islamic banking is also benefiting from evolving regulation and supervision. Turkey's stock market operator, Borsa Istanbul (BIST), launched trading in sukuk (Islamic bonds) in August 2018, deepening the country's Islamic capital market activities, read the report.
The Participation Banks Association of Turkey (PBAT), which groups Islamic banks operating in Turkey, set up a Central Advisory Board in 2018 to ensure standardization of Islamic banking products and alignment with international Islamic banking practices. TKBB targets an Islamic banking penetration of 15% by 2025, it noted.
South Korea to launch mass coronavirus testing, U.S. pledges $1 billion for vaccine
US Fed unlikely to cut interest rates over coronavirus
Disney CEO Bob Iger steps down from post effective immediately
Dow tumbles 800 Points amid coronavirus fears
Russian energy minister: "Oil era to last for at least 20 more years"
WHO expert stresses need to increase preparedness to fight coronavirus
Death toll from Coronavirus in Italy rises to 10, total of 332 people infected
First Vice President of Azerbaijan Mehriban Aliyeva shares Instagram post regarding 28th anniversary of the Khojaly genocide
US imposes sanctions on entities in Russia and China over support of Iran's missile programme
28 years pass since Khojaly Genocide committed by Armenian military
U.S. confirms Afghan government agreed to postpone presidential inauguration
Azerbaijan's CEC announces its final decision on the parliamentary elections
Recovered patients on Hainan donate blood plasma with antibodies
CEC Chairman: “Election process held at a high level”
Somalia telecoms employee killed by U.S. air strike -company
Thomson Reuters names new CEO
Turkish President Recep Tayyip Erdogan ends visit to Azerbaijan
Mastercard CEO Ajay Banga to step down, insider Miebach tapped
Pompeo calls on Iran to tell the truth about details on coronavirus
Spain records first case on mainland
President Ilham Aliyev hosted reception in honor of Turkish President Recep Tayyip Erdogan
First case of coronavirus reported in Switzerland
Russia nominates its candidate for UN Human Rights Council
President Ilham Aliyev: “Azerbaijan always supports the just cause of Turkey"
Belarus, Russia sign protocol on compensations for off-spec oil
Azerbaijani President: “Controversial statements of Armenian leaders are great blow to negotiations process”
Nar’s 4G users surpass 1 million
Erdogan: “Settlement of Garabagh conflict within Azerbaijan’s territorial integrity is our greatest desire”
Turkish President: “One of most dreadful tragedies of 20th century committed in Khojaly showing no quarter to elderly people and women”
President Ilham Aliyev: “Azerbaijan will continue to purchase modern weapons from Turkey”
23 Azerbaijani citizens who return from Iran hospitalized with coronavirus suspicious
Azerbaijani, Turkish presidents made press statements
Thailand reports two new coronavirus cases bringing total to 37
Erdogan: “Political solidarity between Turkey and Azerbaijan is at highest level”
Erdogan: "Our solidarity with Azerbaijan continues in the fight against terrorism"
Afag Aliyeva: “Some shortage occurs, because of people buy excessive mask from pharmacies” - UPDATED
Turkish President: “Construction of Nakhchivan-Turkey railway is important”
Azerbaijan, Turkey signed bilateral documents
Tenerife hotel locked down over coronavirus
Strongest wind recorded in Ganja – ACTUAL WEATHER
Azerbaijani Health Ministry calls on people to postpone pilgrimages to holy places in Iran
Iran's coronavirus death toll rises to 16 as worries deepen - UPDATED
Iran urges citizens to stay at home as coronavirus spreads
Turkey quarantines its citizens returning from Iran
EU Commission advises staff not to go to Lombardy over virus
Kremlin: "There were no discussions about possible meeting between Putin and Erdogan"
Health Ministry: No state can hide infection
Xi Jinping: "China is confident that it will beat the disease, and it is fully capable of doing it"
Uzbek President reshuffles Cabinet of Ministers
Shopping center evacuated in Makhachkala, Dagestan, over fire
CEC to sum up parliamentary elections today
14 years pass since establishment of the Ministry of Emergency Situations: They always come to your aid in any difficult moments - PHOTOSESSION - VIDEO
First Vice-President Mehriban Aliyeva attended opening ceremony of rebuilt Azerbaijan pavilion at Exhibition of Achievements of National Economy in Moscow - UPDATED
Open Doors Day and the military oath-taking ceremony were held on the occasion of the State Flag Day
An exhibition that also presents President Ilham Aliyev's photo opened in Moscow
Azerbaijani President and first lady inaugurated Koroglu Transport Exchange Center of Baku Transport Agency - UPDATED
Azerbaijan's Ministry of Health: No hospitalisation in Azerbaijan due to coronavirus
Huawei says no impact to 5G supply from coronavirus
Protesters attack bus of China evacuees in Ukraine