S&P: "Participation Banks Have Grown at a Healthy Rate in the Last 5 Years"
In the statement made by the international credit rating agency Standard & Poor's (S&P), it was pointed out that the market share of participation banks in the banking industry is expected to double and reach 15% by 2025. Stating that Turkish participation banks have grown at a healthy rate in the last 5 years, Standard & Poor's have predicted that the pandemic, energy transformation, and Turkey's goal to produce electric cars may lead to an increase in the use of Islamic financial products.
Participation banks in Turkey have grown at a healthy rate in the last 5 years
Pointing out that the participation banks in Turkey have grown at a healthy rate in the last 5 years, the statement indicated that the share of the sector in the total banking market that was 5.1% at the end of 2015 increased to 7.2% of the assets at the end of 2020. In the statement indicating that the Sukuk issuance also increased from $2 billion to $14 billion in the mentioned period, the following comment was made: "This growth has been achieved with the strong support of Turkish officials who have repeatedly shared their views on the importance of Islamic finance as an additional instrument to finance the Turkish economy".
Standard & Poor's stated that the pandemic, energy transformation, and Turkey's goal to produce electric cars may lead to an increase in the use of social and green financial instruments, including Islamic finance products and especially sukuk. S&P also reported that the global Islamic financial sector was expected to grow at a rate of 10% to 12% in the 2021-2022 period.