Moody’s Anticipates Islamic Finance Assets in Turkey to Double by 2025/2026

According to Moody’s Investor Services (Moody’s), participation banking assets are set to increase in Turkey over the next five years, from around 7.2% of total banking assets as at the end of December 2020. Total participation banking assets in Turkey grew 54% year-on-year (YoY) in 2020, ahead of total banking sector asset growth of around 36% YoY, said Moody’s.

Why it matters?

The Government of Turkey has been investing in the country’s regulatory and supervisory environment pertaining to the participation banking sector over the past few years. Despite these efforts, participation banking in Turkey remains smaller than other Gulf Cooperation Council countries, where Islamic banking assets making up around 40% of total banking...