CEO of Turkey’s largest Islamic bank quits as competition grows

ISTANBUL - Reuters

Türkiye Finans, the largest Islamic bank in Turkey, told regulators that its chief executive Derya Gürerk had resigned from his position on June 12, an unexpected move at a time of growing competition in the sector.

Executive vice president Osman Çelik would take over the role temporarily, the bank said in a regulatory filing without elaborating on the departure of Gürerk, who had served on the role since 2011.

A bank spokesperson was not immediately available for comment.

Türkiye Finans, in which Saudi Arabia’s National Commercial Bank is the largest shareholder, has a predominant focus on corporate banking and is one of four incumbent Islamic banks in the country.

These are being joined by the Islamic units from state-run lenders Halkbank, Ziraat Bank and Vakıfbank.

This is expected to widen the reach of interest-free finance in the majority Muslim nation but is also raising concerns about the possible impact on the sector’s growth and profitability.