3 state-owned banks to merge

In 2020, Türkiye Sigorta was established through the merger of Ziraat Sigorta, Halk Sigorta, and Güneş Sigorta. Following this merger, which was carried out under the umbrella of the Turkey Wealth Fund (TVF), it has been suggested that economic management is evaluating a similar restructuring for state-owned participation banks.

According to a report by Dilek Güngör from Sabah, in addition to the currently operating Ziraat Katılım and Vakıf Katılım Bank, Halk Katılım—which has received an operating license from the BRSA and is planned to begin actual operations in February—is also expected to be included in the merger plan.

3 BANKS TO BE GATHERED UNDER A SINGLE ROOF

In the restructuring planned to be implemented within the TVF, similar to the Türkiye Sigorta example, it is envisioned that the three participation banks will operate under a single bank umbrella and provide services under a new name.

It is noted that the share of participation banks, known in the public as "interest-free banks," in the banking sector has reached approximately 10 percent of the total volume due to increasing demand in recent years. In this context, it is stated that economic management is evaluating the option of consolidating the operations of the three banks under a single structure.

News Source: 12punto