Islamic finance gains ground in Turkey

Published March 13th, 2016 - 01:00 GMT
Vakifbank, Turkey's third-largest state bank, has received approval to launch an Islamic banking division. (EBRD)
Vakifbank, Turkey's third-largest state bank, has received approval to launch an Islamic banking division. (EBRD)

Istanbul is on the way to becoming one of the world’s leading finance centers, the head of the city’s stock exchange has said.

“With more investors coming to Istanbul and more cooperation across the world, we will proceed faster with making the city a finance center,” Borsa Istanbul CEO Tuncay Dinc told Anadolu Agency in Bosnian capital Sarajevo on Friday.

Speaking at the inauguration of the Islamic index at the Sarajevo stock exchange, Dinc said Istanbul should be further integrated into world markets.

One of the areas the Borsa Istanbul is leading the world is in interest-free finance, which is compatible with Islam.

Interest-free finance has become increasingly and Turkey has placed particular focus on participation banks that offer finance based on assets.

Vakifbank, Turkey’s third-largest state bank, recently received approval to launch an Islamic banking division, following the opening of Turkey's first state-owned Islamic bank.

“The effect of participation banks in the banking sector is increasing,” Dinc said.

By Lejla Biogradlija

 

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