Turkey's Islamic Finance and Banking Sector Could Account for 15% of Market By 2025

Turkey's Islamic finance and banking sector, or participation banking as it is known in the country, has outperformed conventional banks and could account for 15% of the market by 2025. This was revealed by sector representatives, who also expect Istanbul Financial Center (IFC) to make a significant contribution to the interest-free finance system.

Why it Matters?

Ikram Göktaş, Chairperson of the Board of Directors of the Participation Banks Association of Turkey (TKBB) and General Manager of Vakıf Katılım, explained that the public participation banks' entry into the sector has greatly boosted the interest-free lenders’ growth. Market share of participation finance institutions was stagnant at 5% for a considerable period of time; however,...