Bank to assist Islamic banks set to launch

ISTANBUL - Anadolu Agency

Mega Islam Bank aims to support the development of banks in financing big projects and is planned to be found with $1 billion in capital.

Mega Islam Bank, which aims to assist the development of banks in financing big projects, will be established with $1 billion in capital, a sector representative said yesterday.

Islamic bank Türkiye Finans’ general manager, Derya Gürerk, said Mega Islam Bank was slated to resemble the model of the European Bank for Reconstruction and Development (EBRD).

Three subjects should be focused

Mega Islam Bank, which will give credit to development banks to finance big projects, is the result of an acute need, said Gürerk, noting that they were supportive of the new formation.

Gürerk said the bank would focus on three subjects: liquidity, infrastructure investments and capital investments.

He said the bank was expected to be founded with $1 billion in capital. “The bank should create $10 billion sukuk and funds from this $1 billion capital and allocate it to long-term infrastructure projects, big projects, and capital investments,” he said.

Gürerk also said the countries’ partnership structure and credit-using terms at Mega Islam Bank were subjects that should be worked on rigorously.