Türkiye Wealth Fund moves to merge state Islamic banks Ziraat and Halk Katılım

What's the deal? The Türkiye Wealth Fund (TVF)Dealroom has a profile for this one. Try Dealroom → has signed agreements to acquire all shares of Ziraat KatılımDealroom has a profile for this one. Try Dealroom → and Halk KatılımDealroom has a profile for this one. Try Dealroom →, two state-owned participation finance institutions. The deal was signed on October 7, with the fund's wholly owned subsidiary, TVF Katılım Finans Yatırımları AŞDealroom has a profile for this one. Try Dealroom →, taking on both lenders for an undisclosed sum.

Why now? TVF said the move marks the first stage of merging state-owned participation finance institutions under one roof. Transfers are targeted for completion by the end of 2026, pending approval from the relevant legal and regulatory authorities.

What's the endgame? Participation finance refers to Islamic banking, which operates under rules barring interest. TVF said the plan aims to develop the capacity and competitiveness of state-backed participation lenders and lift their share of financial markets.

The signal: Consolidating public participation banks under a single structure reflects Turkey's push to expand Islamic finance within its broader financial system. The combined entity would give the state a larger, more competitive player in a growing segment.

Read more: yenicagri.com

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