Turkey’s state-run lenders Ziraat Bankasi and Halkbank have applied for regulatory approval to transfer their Islamic banking units to a subsidiary of the Turkey Wealth Fund, TVF Katılım Finans Yatırımları AS. Ziraat plans to transfer its 99.99% stake in Ziraat Katilim Bankasi AS, while Halkbank plans to transfer its 99.99% stake in Halk Katilim Bankasi AS. Transaction prices were not disclosed.
Turkish President Recep Tayyip Erdogan announced in June that the government intended to consolidate state-owned Islamic lenders under common ownership. The merger, he said, would bring "a different momentum to the sector." A fourth state-run Islamic bank, Emlak Katilim, is slated for an initial public offering. TVF Katılım Finans Yatırımları signed agreements on Oct. 7 to acquire all shares in Ziraat Katilim and Halk Katilim, according to the wealth fund.
The fund stated the agreements marked the completion of the first stage of consolidating state-owned participation finance institutions. The transfers are targeted for completion by the end of 2026, subject to regulatory and legal procedures.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing