BANKING - AIBIM Malaysia and TKBB Turkey sign MoU

2012 May 30 Aibim Tkbb Mou

CAPITAL MARKETS - TL certificate will be on the basis of the lease, and the dollar

www.dunya.com - ISTANBUL - Deputy Prime Minister Babacan, Treasury certificates to exhibit significant rents, announced that the TL and foreign currency denominated.

Deputy Prime Minister Ali Babacan, Participation Banks Association of Turkey (TKBB) Chairman Fahrettin Yahsi, "the Treasury get the TL to exhibit significant rent certificate" proposal, "From the domestic market will no doubt, but also foreign investors, such as Eurobonds There will also be showing interest in foreign exchange on the basis of "he said.

Babacan, TKBB'nin 11.Olağan General Assembly in his speech, referring to the Treasury to exhibit significant lease certificates, the following made ​​statements: (source)

BANKING - Participation bank assets grow 29 percent last year

www.hurriyetdailynews.com -Participation banks’ presence is growing rapidly in Turkey, the Participation Association data show as the government prepares to supports the sector with sukuks
 
Participation banks’ assets grew 29 percent to 56.1 billion Turkish Liras last year, Fahrettin Yahşi outgoing chairman of the Participation Banks Association of Turkey (TKBB) said May25 at the association’s 11th general assembly. (source)

BANKING - Participation banks has grown 10 times in 8 years

www.dunya.com - ANKARA - "Islamic banking", "Interest-free banking" referred to with names such as, participation banks working on the basis of dividends rather than interest, noted the rapid growth of the last 8 years. Funds collected by the numbers 4 participation banks in Turkey, which is approximately 9 times in 8 years, kullandırdığı 12.8 times the volume of funds, assets have grown 10 times. Participation banks, the volume of total deposits in the banking sector, 5.7 percent, 6 percent of the credit volume, asset size reached a share of 4.6 percent.



"Interest-free banking", also known as participation banks working on the basis of dividend funds collected approximately 9 times the last eight years, kullandırdığı 12.8 times the volume of funds, assets have grown 10 times.

Participation Banks Association of Turkey (TKBB), Banking Regulation and Supervision Agency (BRSA) and the calculation made according to Central Bank data, a total of four participation banksassets grew by 29.6 percent in 2011 reached 56.1 billion pounds. The total size of the funds collected from the four participation banks increased by 19.2 percent last year, 39.9 billion, an increase of 28.9 percent of the volume of funds kullandırdığı was 41.5 billion pounds. Participation banks increased by 5.8 percent last year, the total profit was 803 million pounds. (source)

CAPITAL MARKETS - Turkish cleric’s article on bonds disturbs Islamic lenders

www.hurriyetdailyews.com - Participation banks withdraw from a Treasury auction, fearing that the government’s revenue index bonds yield interest income, which is not religiously appropriate. Debate comes after an opinion by a leading consultant

A top consultant for Turkey’s participation banks said that Treasury-issued revenue-linked bonds are no different than government bonds, as both are based on interest, according to daily Vatan. Professor Hayrettin Karaman’s fatwa-like comments shocked participation banks, which decided not to bid for new revenue-linked bonds.  (source)

CAPITAL MARKETS - Top advisor to participation banks says GES Revenue Indexed Bonds equal to gov't bonds

www.todayszaman.com - Comments from theologian Hayrettin Karaman, top advisor to Turkish participation banks -- which refrain from being involved in financial activities deemed forbidden in Islam, claimed on Feb. 19 that revenue-indexed bonds (GES) are no different than government bonds in terms of interest charged and this has created a difficult situation for participation banks in Turkey, which hold $1 billion in GES.  (source)

BANKING - Islamic participation banks earn $450 mln in profit in 2011

www.todayszaman.com - Participation banks, which refrain from being involved in financial activities deemed forbidden in Islamic teaching, increased their profit by 6 percent, to TL 850 million ($450 million), in 2011 compared to 2010.

According to a statement released by the Participation Banks Association (TKBB) on Monday, the financial institutions' assets and equity capital have also grown by 29 percent and 13 percent, respectively, year-on-year to TL 56 billion and TL 6.1 billion. Their assets were only TL 3.9 billion in 2003. (source)

CAPITAL MARKETS - Turkey to overcome secular qualms with Islamic bond

www.reuters.com -
* Sovereign sukuk in 2012 could raise several billion dollars
* Would pave way for corporate issues, set benchmark
* Could be used to fund large projects
* Turkish non-financial firms keen to tap market

By Seda Sezer and Nevzat Devranoglu

ISTANBUL, Feb 22 (Reuters) - Turkey's government plans its first-ever issue of Islamic bonds this year, overcoming sensitivities about Islamic finance in the secular republic as it seeks to tap a rich pool of investors flush with oil money.

A sovereign sukuk issue from an economy regarded as one of the most progressive and successful in the Muslim world would signal intent on Turkey's part to play a bigger role in Islamic finance. The size of the global sukuk market is estimated at more than $100 billion.

"It will be like ringing a bell and attracting all the attention," said Murat Cetinkaya, deputy chief executive for treasury at Kuveyt Turk, an Islamic bank that has been a trend-setter for corporate sukuk issues in Turkey. (source)

BANKING - Construction takes lion's share of participation bank loans

Much extolled as the driving engine of a fast economic rebound in past years, Turkey's construction sector received the highest share of loans extended by participation banks in the country last year, the latest data indicate. (source)

ARTICLES - SPECIAL COMMENT: Turkish exchange plans ties with UAE and Egyptian markets

alifarabia.com - By Rushdi Siddiqui, Global Head of Islamic Finance, Thomson Reuters
Turkey has been building capital market bridges to GCC and South East Asia, and chairman of the Istanbul Stock Exchange, Hussain Erkan, has been a leading architect in establishing dialogue, hosting events, and facilitating cooperation and coordination with his counterparts for both Islamic and conventional finance. In this interview, Erkan shares his thoughts on the challenges and progress of Islamic finance in Turkey, among various other issues. He is hopeful that the improvements made should be able to attract investors from the GCC. (source)

ARTICLE - Osman Akyz TKBB Secretary General - Banking What would it mean for Turkey?

Interest-free banking in Turkey with 637 branches and 13,000 employees who carry out activities 4 contributions bank, on the successful model showed that a robust and reliable banking system and has set an example to the whole world.

Participation in our country's financial and banking system in 1985, including the Banking (interest-free banking), nowadays it is an integral part of the banking sector. In 1985, "Private Finance Agency as" establishments that started operations in the world, the legal infrastructure developments in the Turkish banking sector, completed the establishment and development. These organizations themselves over time, better able to express and participate in the profit and loss participation accounts in order to evoke the essence of the isimlendirildiler participation banks.  (full story and source)

EVENTS - Islamic banking today and today's applications (Dec 10, 2011 - Istanbul)

Source

BANKING - Participation banks, 596 million pounds profit

dunya.com - ISTANBUL - Joined the net profits of banks as of Sept. 30, a 7 percent increase over the same period of last year was 596 million pounds.

Participation Banks Association of Turkey (TKBB) announced on September 30, at the end of the funds collected from banks, by the end of 2010 increased 12 percent to TL 38 billion, rose 61 percent share of the funds collected funds in the TL, while 39 percent share of foreign currency funds amounted to. (source)

BANKING - Five Islamic Banks From Gulf to Invest in Turkey, Star Says

Five Islamic banks, each with equity capital of less than $500 million, will invest in Turkey in the next two years, Star said, citing Fahrettin Yahsi, head of Islamic banks’ association in Turkey.  (source)

CAPITAL MARKETS - Turkey’s Tax Change Paves Way for Sukuk Sales: Islamic Finance

Islamic bond sales from Turkey are picking up pace after the government changed its tax law to apply the same rates to sukuk as non-Islamic debt.

Two banks, Asya Katilim Bankasi AS (ASYAB) and Albaraka Turk Katilim Bankasi AS (ALBRK), plan to sell as much as $500 million in Shariah-compliant debt after Kuveyt Turk Katilim Bankasi AS, a unit of Kuwait Finance House (KFIN) KSC, offered $350 million of five- year sukuk Oct. 20. (source)

BANKING - Turkey: Islamic Banking Making Inroads

eurasia.net  - Amid Turkey’s turn away from strict secularism, Islamic banking practices in the country are gaining currency. But they still face significant obstacles as they strive to enter the financial mainstream.

Turkey at present has four Islamic banks -- three that are partially owned by companies based in the Persian Gulf -- which accounted for 5 percent of Turkey’s 1-trillion-lira ($559 billion) banking sector in late 2010, according to data from the Participation Banks’ Association of Turkey, a lobbyist group for Islamic banks.

The banks are known as “participation banks,” since, in keeping with Islamic tenets, depositors and borrowers share the risk of financial transactions with the banks themselves. Interest is not charged. Clients are mostly pious entrepreneurs from the central region of Anatolia, especially in cities such as Gaziantep, Konya, and Kayseri. The area is home to several companies that have become known as “Anatolian Tigers” for their rapid growth.(source)

BANKING - ‘Gulf participation banks looking for opportunities in Turkey’

Turkish Association of Participation Banks (TKBB) Chairman and the head of Albaraka Türk Participation Bank Fahrettin Yahşi has said there are investors from the Gulf region that intend to start up participation banks in Turkey. (source)

WORLD - OPINION - Strong Outlook for Turkish Islamic Banks

IRAN DAILY - International credit rating agency Standard and Poor’s (S&P) asserted in a report published last week that Turkey’s participation (Islamic) banks could continue their recent strong growth if they can cultivate stronger ties with their international owners and create a sustainable brand image.

Turkey’s Islamic finance market is as old as the one in Malaysia and others in the Persian Gulf Cooperation Council (PGCC) countries, Arab News wrote. (source)

BANKING - SandP urges Turk participation banks to leverage their foreign ownership

ISTOCK.COM - Sept. 12--International credit rating agency, Standard and Poor's (S&P) assertion in a report published last week that Turkey's participation (Islamic banks) "could continue their recent strong growth if they can cultivate stronger ties with their international owners and create a sustainable brand image," underpins an Islamic finance market which is as old as the one in Malaysia and others in the Gulf Cooperation Council (GCC) countries.(source)

BANKING - Turkey’s chief bankers advise people to stop excessive spending (Albarkaka Turk)

Referring to the rise in consumer loans and outstanding credit card bills by 19.3 percent and totaling more than TL 200 billion at the end of last year, Turkey’s leading bankers have underlined that people should be more careful when spending their money. (source)