Turkish banking watchdog certifies Ziraat Bank’s Islamic branch for operations

ANKARA

 One of Turkey's largest state-owned banks, Ziraat Bank, was authorized by the country's banking regulator to start operations in its Islamic banking division, according to the government's official gazette on Thursday.

The Banking Regulation and Supervision Agency issued a certificate giving permission to Ziraat Bank to commence operations as an Islamic bank.

On Oct. 15. of last year, the agency allowed Ziraat and its sister companies -- Ziraat Insurance, Ziraat Savings, Ziraat Investment and Ziraat Technology – to establish the new Islamic bank as main shareholders with a capital of $300 million.

Last August, Deputy Prime Minister responsible for the economy Ali Babacan disclosed government plans to establish three state-owned Islamic banks as subsidiaries of the state-run lenders by the end of 2015