By Inci Ozbek | Updated on Oct 09, 2026 at 05:41 PM
Turkey’s state-run lenders Ziraat Bankasi and Halkbank applied for regulatory approval to transfer their Islamic banking units to a Turkey Wealth Fund subsidiary TVF Katılım Finans Yatırımları AS, according to public filings.
Ziraat plans to transfer its 99.99% stake in Ziraat Katilim Bankasi AS, while Halkbank plans to transfer its 99.99% stake in Halk Katilim Bankasi AS. Transaction prices were not disclosed.
Turkish President Recep Tayyip Erdogan said in June that the government planned to bring state-owned Islamic lenders Ziraat Katilim, Vakif Katilim and Halk Katilim under a common ownership. The merger would bring “a different momentum to the sector,” Erdogan said. A fourth state-run Islamic bank, Emlak Katilim, will sell shares in an initial public offering, he added.
Read More: Three Turkish Banks to Merge in Islamic Economy Push
TVF Katılım Finans Yatırımları signed agreements on Oct. 7 to acquire all shares in Ziraat Katilim and Halk Katilim, the wealth fund said on Friday, according to state-run Anadolu Agency. The fund said the agreements marked the completion of the first stage of the consolidation of state-owned participation finance institutions.
The transfers are targeted for completion by the end of 2026, subject to regulatory and other legal procedures, according to the wealth fund’s statement.