Türkiye Halk Bankası A.Ş., better known as Halkbank — one of Turkey's largest state-owned banks — recently announced that its board of directors had authorized its management to establish an Islamic bank. The bank has now received approval from the Turkish Banking Regulatory and Supervisory Authority to establish an Islamic bank in Turkey with a share capital of TRY 1 billion.
In 2014, T.C. Ziraat Bankası A.Ş., the largest Turkish state-owned bank, also received approval to establish a Turkish Islamic bank.
These developments show the Turkish government's determination to develop the Turkish Islamic banking market. This movement also demonstrates Turkey's ambition to diversify financial products and financing sources available to investors in Turkey.