16 April 2014, Wednesday
Today's Zaman

Islamic participation banks earn $450 mln in profit in 2011

27 March 2012, Tuesday /TODAY'S ZAMAN
Participation banks, which refrain from being involved in financial activities deemed forbidden in Islamic teaching, increased their profit by 6 percent, to TL 850 million ($450 million), in 2011 compared to 2010.

According to a statement released by the Participation Banks Association (TKBB) on Monday, the financial institutions' assets and equity capital have also grown by 29 percent and 13 percent, respectively, year-on-year to TL 56 billion and TL 6.1 billion. Their assets were only TL 3.9 billion in 2003.

Turkish participation banks -- namely Bank Asya, Türkiye Finans, Kuveyt Türk and Albaraka Türk -- operate under the Turkish Banking Law and are regulated and supervised by the Banking Regulation and Supervision Agency (BDDK). The total amount of money deposited into those four banks grew by 18 percent to TL 39.8 billion last year, Monday's statement noted.

"The volume of loans they extended to businesses and individuals, likewise, increased by 28 percent, to TL 41.1 billion," it said. The four banks employ nearly 14,000 people in 685 branches across the country.

Islamic banking has a similar rationale to conventional banking except that it operates in accordance with Shariah rules on transactions, forbidding interest as well as investment in businesses that provide goods or services considered “haram,” or contrary to Islamic principles.

BUSINESS  Other Titles
Turkish schools help to enhance trade relations with Africa
Unemployment rate sees decrease year-on-year in Jan
Pegasus Airlines to start flights to Bahrain
Installment payments down 16 pct since credit card regulation implemented
Euro zone's trade surplus widens on rising exports in February
Doğan Holding merges with publishing group
Turkey's Koç: We will concentrate our energy on investments
EU lawmakers complete financial system overhaul
Egypt limits air conditioning in mosques as power shortages worsen
TL 1.5 billion budget deficit seen in Q1
Cacharel to bring womenswear to Turkey with 2015 season
Business organization begs for refocus on economy
Purge in bureaucracy may unsettle markets, economist warns
Industrial turnover index falls 0.2 pct in February
Foreign debt increase breaks national record
Agricultural producer price inflation reaches double digits
Export expectation index rises by 18 points for Q2
Bank loans decelerate amidst restrictive measures
ECB Report: Turkey's economic vulnerabilities may harm eurozone
Calls to boycott Hizmet institutions denting market confidence