Efforts are underway to consolidate Ziraat Katılım, Vakıf Katılım, and Halk Katılım banks under a single roof. A significant stage in the merger process has been completed as the Turkey Wealth Fund has taken over all shares of Ziraat Katılım and Halk Katılım.
THREE PUBLIC BANKS TO BE BROUGHT UNDER A SINGLE ROOF
It is planned to consolidate Ziraat Katılım, Vakıf Katılım, and Halk Katılım banks under a single roof. Following the merger, the three banks are aimed to operate under a new name.
This step was announced by AKP Chairman and President Recep Tayyip Erdoğan at the 3rd Istanbul World Islamic Economy Summit held on June 5.
In his speech, Erdoğan explained the plan for merging the three public participation banks with the following words:
"Another move of ours will be the merger of Ziraat, Vakıf, and Halk Katılım. A great synergy will emerge from these three participation banks joining forces, and hopefully, the sector will gain a different momentum."
SHARE TRANSFER STEP FROM THE TURKEY WEALTH FUND
The first significant step in the process of merging the three banks was taken by the Turkey Wealth Fund (TVF).
TVF Katılım Finans Yatırımları AŞ, a 100 percent subsidiary of the TVF, has taken over all shares of Ziraat Katılım and Halk Katılım banks.
In a statement published on the Turkey Wealth Fund's website, it was reported that the relevant legal and regulatory processes within the scope of share transfer agreements have been completed and closing transactions have been carried out.
Thus, an important stage in the efforts to consolidate public-capital participation finance institutions under a single roof has been completed.
TURKEY INSURANCE MODEL TO BE APPLIED
The consolidation of public-owned financial institutions under a single brand had been on the agenda before.
In 2020, Ziraat Sigorta, Halk Sigorta, and Güneş Sigorta were brought together to create the "Türkiye Sigorta" brand. A similar restructuring is aimed to be implemented for public participation banks.
With the planned merger, it is intended to increase the capacity and competitiveness of participation finance institutions and to grow their share within financial markets.
News Source: 12punto
