Vakıf Participation Bank to be launched by end of year

A new participation bank with $300 million in capital is about to be completed by the Prime Ministry Directorate General of Foundations.

The general manager of Foundations, Adnan Ertem announced that the bank will be established within a month and Vakıf Participation Bank will aim to establish 15 branches in Turkey by the end of this year.

Speaking to Turkish daily, Sabah, Ertem said the legal procedures regarding the foundation of Vakıf Participation Bank by the Directorate General of Foundations are almost ready and the authorization for the establishment of the Participation Bank has been received from the Banking Regulation and Supervision Agency (BDDK) and a decree from Parliament has been issued.

Ertem said that in order to obtain the loan for the foundation of the bank they will be visiting Jeddah in Saudi Arabia soon. Ertem said the Participation Bank will be established with a capital in Turkish lira equaling $300 million. Underlining that while the foundation process is almost complete, Ertem said that foundations do not receive any grants from the general budget and therefore, such a step was taken in order to ensure that the participation bank is capable of managing its income and expenses. He also said that most of the revenues of the Vakıf Participation Bank will be used in restoration and other charity works undertaken by the Directorate General of Foundations.