Halkbank's plans to establish an Islamic lender postponed: CEO

The chief of Turkey?s state-run Halkbank has said the bank?s plans to establish an Islamic lender have been postponed ?for judicial reasons,? adding that the management is now working on another formula that does not require equity raising.  

?Our bank?s efforts to set up an Islamic lender have been postponed for judicial reasons. We are now working on another formula that does not require any capital raising,? CEO Ali Fuat Ta?kesenlio?lu told Reuters on Oct. 19. 

Halkbank has withdrawn its application to set up an Islamic lender, the bank said in a statement on Oct. 15.

It asked the Banking Regulation and Supervision Agency (BDDK) to cancel its previous application to establish a participation bank, the statement said, underlining that the bank may revisit the plans in the future. The lender, however, did not name any reason for the move. 

According to the existing law, $300 million of equity is a must for the establishment of a lender in Turkey. 

There are currently four Islamic banks, dubbed ?participation banks,? operating in Turkey: Albaraka Türk, Bank Asya, Kuveyt Türk and Türkiye Finans. Ziraat became the fifth bank entering into the sector as of May.

Photos from the aftermath of Ankara blast

Turkey completes one-third of portable wall on border with Syria

Feminist initiative #MoreWomen photoshops men out of politics to underline inequalities

Halfeti - A town of mesmerizing beauty

Exhibition shows Istanbul through eyes of children

Secret weapons of Turkish army: locally produced rocket launchers, missile systems

The bugs of Ankara: The weirdest scenes that anyone can run into in Turkish capital

A bird's eye view tour of Turkey's eastern provinces of Van and Hakkari