Turkey, Bosnia to boost cooperation in participating banking

ISTANBUL

The Participation Banks Association of Turkey (TKBB) has signed a memorandum of understanding with Bosna Bank International (BBI) to strengthen cooperation in the participation banking sector.

The agreement signed in Bosnia within the scope of the 11th Sarajevo Business Forum, held on May 11-12, covers cooperation on issues such as participation in banking principles, mutual promotion of business and banking institutions, and organization of important events and activities in both countries, the TKBB said in a statement. 

The deal was signed by TKBB acting Secretary-General İsmail Vural and BBI CEO Alek Bakalovic.

The signed protocol with BBI includes training, information exchange, increasing employee experience, and development of participation banking, said Vural.

“We do not see our cooperation as just an economic contribution. We have always had a long-standing bond with this region. BBI’s relations with our participation banks will further develop with the Forum, and substantial economic ties between the two countries will be strengthened,” he added.

For his part, Bakalovic noted that BBI is the only participation bank operating in Bosnia. 

“We signed the agreement with TKBB to improve our cooperation and take it to the next level. We want to strengthen the liaison between the two countries,” he said. 

BBI was established by Islamic Development Bank (45.46 percent share), Dubai Islamic Bank (27.27 percent share), and Abu Dhabi Islamic Bank (27.27 percent share).

Medium-term growth prospects for Turkey’s participation banks are supported by the segment’s strategic importance to the authorities, above-sector-average growth, aided by the entry of three state-owned banks, and Turkey’s favorable demographics, Fitch Ratings said in a recent report. 

There are six participation, or Islamic- banks in Turkey, namely Al Baraka, Emlak Katılım, Kuveyt Turk, Turkiye Finans, Vakıf Katılım and Ziraat Katılım.