islamic finance country report - turkey
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The Islamic Research and Training Institute (IRTI), a member of the Islamic Development Bank Group (IDBG), was established in 1401H (1981). The principal aim of IRTI is to undertake research, training and advisory activities in Islamic Economics and Islamic Finance to facilitate the economic, financial and banking activities in IDB member countries to conform to Shariah. A knowledge-based organization, IRTI, is considered to be one of the pioneers and key centers of excellence around the world in promoting and supporting the development and sustenance of a dynamic and comprehensive Islamic Financial Services Industry (IFSI), which supports the socio-economic development of IDB member countries and Muslim com-munities across the globe.
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President of Islamic Development Bank (IDB) Group Ahmed Muhamed Ali speaks during the Third IDB 1440H Vision Commission Meeting in Kuala Lumpur March 23, 2006. REUTERS/Zainal Abd Halim
table oF Contents
Foreword & MeSSAge FroM PArtner 6
eXCLUSIVe to tHIS rePort 11
teAM oF ContrIbUtorS 16
StUdY PUrPoSe, SCoPe & APProACH 19
CoUntrY bACKgroUnd 23
MACro-eConoMIC enVIronMent 27 A. Macro-economic Fundamentals 28 b. FdI and Investment trends 34 C. Socio-economic Health 36 d. trade trends and opportunity Sectors 38 e. general business environment 41
FInAnCIAL MArKet LAndSCAPe & trendS 43 A. Customer Profile 43 b. Financial Landscape 45 C. regulatory and Supervisory Framework 61
ISLAMIC FInAnCe deMAnd & PotentIAL 69 A. Islamic Finance development 70 b. retail Survey Findings & Insights 100 C. Islamic Finance Market Potential/demand 113 d. turkish Sharia ecosystem 115 e. Microfinance environment overview 116
ISLAMIC FInAnCe InVeStMent SCenArIoS 119 A. Islamic Finance Sector Investment Considerations & Key Challenges 119 b. Zakat and Awqaf Institutions 123 C. Strategic roadmap for Islamic Finance Industry development 124
APPendIX 127 A. retail Survey Methodology & respondent Profile 127 b. Industry Stakeholders Interviewed 133 C. Selected Items on balance Sheet and Information 142
Turkey Country Report 5
I believe that the turkey Islamic Finance report 2014 by thomson reuters, IrtI and CIbAFI is a noteworthy resource for our fast-developing industry. As you are well aware, Islamic banking is displaying an annual growth of over 17 percent globally. Islamic banking asset size is projecting a volume of more than $1.8 trillion by the end of 2013. Participation banking has achieved an enormous leap forward in turkey in recent years. while banking industry assets grew an average of 19 percent annually, participation banks displayed a 32 percent average between 2005 and 2012.
trkiye Finans leads the industry with innovative products as a pioneer with a successful record as the most profit-able participation bank for the last two years in turkey. our figures from the first half of the year are an indication of this. Funds issued by our bank swelled 20.2 percent to 15.7 billion turkish Lira by June 2013, up from 13.1 billion turkish Lira at 2012 year-end. the non-cash loan portfolio volume reached 7.4 billion turkish Lira as of June 2013. Collected funds of the bank soared to 13.3 billion turkish Lira, a 17 percent boost, whereas the average increase in the industry remained at 8.5 percent in the first half of this year.
the sukuk that we issued for $500 million