President Recep Tayyip Erdoğan on Friday said participation finance, often known as interest-free or Shariah-compliant finance, represents a "fairer" model for the whole world, while announcing plans to merge Türkiye's three state-owned Islamic banks.
"Participation finance is a fairer and safer model not just for Muslims, but for the entire world," Erdoğan told the 3rd Global Islamic Economy Summit.
Erdoğan said Ziraat Katılım, Vakıf Katılım and Halk Katılım banks would be consolidated, stressing that the move would create "significant synergy" and initiate a new era in the sector.
"Combining the strengths of these three participation banks will create significant synergy. God willing, the sector will gain new momentum," the president noted.
Erdoğan also outlined plans for an initial public offering (IPO) of another participation bank, Emlak Katılım, which he said would allow citizens to become partners in the growth.
