The Future of Participation Banks and New Banking Licences in Turkey
Ali Ceylan, Partner and Burak Gencoglu, Junior Associate
Baspinar & Partners Law Firm
The market share of participation banks in Turkey has increased since the 2001 crisis. Ali Ceylan and Burak Gencoglu delve into the banking laws in the country and discuss how it may affect the Islamic finance industry.
Islamic finance in Turkey was introduced to attract people who are not willing to engage in the conventional banking system due to their religious beliefs. From a broader perspective, another purpose was to attract foreign capital particularly from the Gulf by establishing these Shariah compliant financial institutions.