Kuwait Finance House

Turkey treads fine line as state-run trio eye Islamic banking

Three Turkish state-run banks plan to launch Islamic units, widening the reach of interest-free finance in the majority Muslim nation, but the government is treading a fine line between promoting the sector and hurting incumbents.

Turkey is pushing ahead with plans for Halkbank, Ziraat Bank and Vakıfbank to set up stand-alone Islamic banks, known locally as participation banks.