President Erdoğan announces merger of Ziraat Katılım, Vakıf Katılım, and Halk Katılım to bolster interest-free finance sector.
Turkey will merge three state-owned participation banks—Ziraat Katılım, Vakıf Katılım, and Halk Katılım—under a single structure, President Recep Tayyip Erdoğan announced. The move aims to strengthen the country’s interest-free finance sector, which Erdoğan described as a fairer and safer model for global markets.
The merger is expected to create significant synergy within the sector, though no timeline or further details were provided. Erdoğan also revealed plans for an initial public offering of Emlak Katılım, a bank reorganized in 2018, to allow public participation in its ownership.
Participation finance firms currently account for 36% of the total market value of companies listed on Borsa Istanbul, reflecting the sector’s growing influence in Turkey’s financial system.