"We Expect Participation Bank Shares to Double"
The international credit agency Moody's announced that it expects the shares of participation banks within the total banking assets to double in the next 5 years.
"The situation is positive for the participation banking sector and the credit of participation banks"
Moody's also stated in the announcement how the establishment of the Participation Finance Department under the Finance Office of the Presidency would benefit the sector. "We expect the share of the participation banks in Turkey within the total banking assets, which were at the 7.2% levels by December 2020, to double within the next 5 years.
The government's increasing interest in participation banking is quite positive for the participation banking sector and the credit of participation banks," said the statement and mentioned the 54% increase in the participation banking assets last year.
It was also stated that despite the rapid increase of participation banks' market share in Turkey, the share itself remained lower compared to the Gulf countries, where the share of participation banking assets within the total banking assets is at 40% levels. "The government sees the İstanbul International Finance Centre as the fundamental ground of the development of participation banking."