...Turkish Islamic Banking Targeted For Growth 15% Asset Share Target in 2023: There are five Islamic banks (participation banks) in Turkey, accounting for 5.1% of total banking sector assets and loans at end-9M15. Participation and conventional banks are subject to a single supervisory authority and the same disclosure requirements. The Turkish government has a strategy to increase the Islamic banks' share of total sector assets to 15% by 2023. To support this strategy, state-owned Ziraat Bankasi established a participation bank, Ziraat Katilim Bankasi, in May 2015; the two other state-owned commercial banks are set to follow suit in the foreseeable future. Above-Sector-Average Loan Growth: The Islamic banks have lagged behind conventional banks in loan growth in the past two years (up 16% in 9M15 year on year). However, this has mainly been due to problems at one bank (Bank Asya). Excluding this, the Islamic banks expanded their loan books by 34% to end-1H15 year on year, compared with sector...
