Fitch Ratings: Growth of Turkish Participation Banks Surpass the Conventional Banks

Fitch Ratings reports that Turkish participation banks have outpaced conventional banks in segment growth in recent years, despite the market being intensively volatile.

Turkey’s participation banks have grown at a higher pace than the conventional banks, albeit this growth coming off the back of a lower asset base. At the end of 2019, Turkey’s participation banks accounted for only 6.3% of total banking tor assets, well short of the Government’s expectation of 15% for 2025.

Fitch also stated that medium term growth prospects for participation banks in Turkey are supported by the expansion of state-owned Islamic banks, as well as favourable demographics implied by...