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Abdullah Çelİk

President & CEO, Bank Asya

INTEGRAL COMPONENT

Participation banks are not an alternative, but an integral component of the Turkish banking system. They have brought the idle funds of interest-sensitive clients into the system, and these banks have provided alternative financial opportunities to manufacturers and businessmen.

MARKET LEADER

Bank Asya is the leading participation bank in Turkey with an asset size of TL17 billion, 200 branches, 4,500 employees, and 3.5 million domestic clients. By the end of 2011, almost 53% of its shares were traded on the Istanbul Stock Exchange (İMKB).

PARALLEL GROWTH

It is possible to identify an increase in investments made by participation banks in line with the economic growth of Turkey. Bank Asya, for example, is in the process of establishing a new private pension and life insurance company that will manage its funds in compliance with Islamic principles.

Ufuk Uyan

General Manage, Kuveyt Türk

SUITS THE MARKET

In the participation banking arena there are many products that suit the needs of the Turkish market. We now need to develop these products. Furthermore, developing qualified personnel is a challenge.

UNIQUE & POSITIVE

There were some gold products traded on the Stock Exchange but ours, called Gold Plus, is the first one that operates without interest products. It has had a positive reception since its launch. We hope to increase the quotation and we have plans to replicate this with products similar to gold in the near future.

ADDING VALUE

We have succeeded in attracting long-term financing for the first time in the history of participation banking. We can now finance investors and entrepreneurs that are going to invest in factories and generate jobs, adding to the production of the economy.

Osman Akyüz

Secretary General, Osman Akyüz

OUR ALLIES

The Participation Banks Association of Turkey (TKBB) is a banking union working with its members, although we have the same regulations as the Banks Association of Turkey (TBB), with which we have good relations. We also work closely with the banking authority, the Banking Regulation and Supervision Agency (BRSA).

ISSUING SUKUKS

We have a very strong and unique system. The government and the banking authority regulate this kind of banking in Turkey; that is why we will be successful. We are trying to attract funds and finance participation banks through the issue of sukuks, which is a practice becoming more common in the Gulf region.

TIME TO GROW

There is a lot of competition between the participation banks and conventional banks. We think the participation banking system will be more successful here, even though this is a new model in Turkey and needs time to grow.

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