Turkish deputy PM for rapid growth in Islamic banking

Istanbul—The Turkish deputy Prime Minister in charge of the economy, Mehmet ªimºek, stressed the high growth potential of Islamic banking, saying its share in the banking sector is expected to increase from 5 percent to 15 percent in the medium term. Highlighting that the share of Islamic banks within the banking and financial system is nearly 5 percent, deputy prime minister in charge of economy, Mehmet Þimþek, said: Our president (Recep Tayyip Erdoðan) set a goal for a 25 percent share of Islamic banking in the long-term, but we will take the necessary steps for the share to reach at least 15 percent in the medium-term.”
Responding to a question about why the Halk Participation Bank’s establishment was delayed, ªimºek said: “Halkbank actually had taken a fast start, but as I understand, there was a dispute regarding the establisher of the bank, Halkbank or the Treasury; that’s why it was delayed. Now, we are speeding up the process.”
Elsewhere, the Banking Regulation and Supervision Agency (BDDK) approved the foundation of Vakýf Katýlým Bankasý A.Þ., Vakýf Bank’s new participation bank, which began operations on Feb. 26. Vakýf Katýlým Bank CEO Öztürk Oran announced that the bank will operate from its current headquarters for the first quarter and hire 120 employees; however, the target is to open 30 branches and hire 500 employees by the end of the year. Onan said the first branches will be opened in the provinces of Istanbul, Ankara, Konya, Gaziantep, Bursa, Ýzmir, Adana, Antalya and Kayseri.
Stressing that Vakýf Katýlým Bank will open 100 branches and hire 1,200 employees within three years, Oran added that Vakýf Katýlým aims to attain 10 percent of the participation banking system’s market share by 2018. “Our main goal is to become the leading bank in the Turkish participation banking sector by 2023.—Agencies

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