CAPITAL MARKETS - Sukuk income to be injected to giant projects

www.invest.gov.tr  -Hurriyet - According to the bankers, Turkey will secure financial resources from a brand-new sector with its new Islamic banking product and that the country can finance mega-projects such as the construction of the third bridge with this income. The total volume of global sukuk issuance was around USD 90 billion in 2011, whereas the same amount was achieved during the first six months of this year. Meanwhile, Qatar hit a record issuance worth a total of USD 4 trillion in July, and the size of the Islamic financial services sector is expected to reach USD 2.8 trillion by 2015. Turkey, which has so far lagged behind in the sector, is now taking the first step to close the gap. (source)

CAPITAL MARKETS - Turkey ready for joint bourse index with Gulf

www.hurriyetdailynews.com - Istanbul Stock Exchange (İMKB) Head İbrahim Turhan said Turkey, Dubai and Abu Dhabi had agreed in principle to launch a joint index, as studies continued for such an attempt with Egypt. Plans for sukuk (Islamic banking) bonds are also on the way, Turhan said, speaking on the second day of the Arab-Turkish Banking and Finance Forum in Istanbul. (source)

BANKING - Move to Baghdad, Iraqi gov’t tells Turkish banks

The tensions between the central Iraqi government and the regional administration in north over disputes on oil fields is affecting Turkish lenders in Arbil. Baghdad calls on Turkish banks in Arbil to carry head offices to the capital city.

Turkish and Northern Iraqi top officials attend an opening ceremony of an airport in Arbil in this March 30 photo before they opened branches of Turkish banks there.  (source)

BANKING - Ali Ulker announces to sell for TL 3.6 million shares in Albaraka Turk

Ülker Group, Biscuit, Chocolate, Confectionery President Ali Ulker, Albaraka Turk Participation Bank will sell shares. Nominal value of £ 1 million 628 thousand 598 shares of Albaraka Turkish stock market for the sale of the Central Registry organization (MMKK) that reference Ali Ülker, that will sell the shares, the capital of the bank's 0.3 percent of falls.

Albaraka Turk, according to yesterday's closing price of 2.25 pounds which is the subject of the sale of 3 million shares of market value is equivalent to 664 million pounds. (source  - google translate)

BANKING - ALBARAKA TURK - Turkish participation bank executive warns on Central Bank move

'The banking sector grew by 20 percent in 2010 while the credit expansion was around 35 percent,' says Albaraka Türk General Manager Fahrettin Yahşi.. Hürriyet photo

The Turkish banking sector will shrink this year if the Central Bank increases the required reserve ratio for banks in a bid to control the already-high credit expansion, said Fahrettin Yahşi, general manager of the Albaraka Türk Participation Bank, a Turkish lender operating on Islamic banking terms.

The credit expansion has one negative and one positive main effect, Yahşi said: contribution to growth and the risk of boosting the current account deficit. He spoke with the Hürriyet Daily News & Economic review after a meeting to launch the lender’s cooperation with Istanbul’s Esenler district municipality for a banking card for residents. (source)

FINANCE -Turkish Parliament approves bill for Islamic production deal

A bill that allows Turkey to join an Islamic production deal was postponed in 2004. DAILY NEWS photo (source)

AWARDS - Finance magazine grants two awards to Turkish participation bank

Euromoney, a prominent finance magazine, has given two awards to a Turkish participation bank, the director general of the bank said Wednesday.

Kuveyt Türk Director General Ufuk Uyan said Euromoney had honored the bank with two awards, including "best sukuk house" and "most innovative deal" awards for 2011. (source)

MICRO FINANCE - Microloan facility launched in Istanbul’s Bağcılar

Istanbul’s first “microloan branch” opened in the working class district of Bağcılar on Wednesday.

Microloans are an increasingly popular method to finance low-income entrepreneurs. (source)