S&P Anticipates Market Share of Participation Banks in Turkey to Double to 15% By 2025

On the 3rd of May 2021, Standard and Poor’s Global Ratings (S&P) released a statement noting that the market share of participation banks within Turkey’s banking sector is forecast to double to 15% by 2025. However, there could be hindrances, and the lack of capital could constrain growth of Islamic finance in Turkey.

Why it Matters?

COVID-19, energy transformation and the country’s goal of producing electric cars could all contribute to increased use of social and green financing tools, which include Islamic finance products, especially Sukuk. Over 2015-2020, Sukuk issuance rose to USD 14 billion from USD 2 billion; this growth has been attributed to Turkish officials who repeatedly spoke of the importance of Islamic finance to...