11.11.2026 13:30
Work is underway to merge Ziraat Katılım, Vakıf Katılım, and Halk Katılım banks under a single roof and have them serve under a new name. Within the scope of the merger plan previously announced by President Erdoğan, the Turkey Wealth Fund took over all shares of Ziraat Katılım and Halk Katılım. With the merger of the three banks, the aim is to strengthen the participation finance sector and increase its competitiveness.
Turkey is preparing for a major change in the public banking sector. A new phase has been reached in the process aimed at combining the strengths of Ziraat Katılım, Vakıf Katılım and Halk Katılım and having them operate under a single roof. Within the scope of the work carried out by the Turkey Wealth Fund (TVF), the transfer of shares of two banks has been completed, while the merger is intended to increase competitive strength in the participation finance sector.
ERDOĞAN HAD ANNOUNCED THE MERGER EARLIER
President Recep Tayyip Erdoğan, in his speech at the 3rd Istanbul World Islamic Economy Summit held on June 5, had announced that three public participation banks would be merged.
Erdoğan announced the plan with the following words:
"Another of our moves will be the merger of Ziraat, Vakıf and Halk Katılım. With these three participation banks combining their strengths, a great synergy will emerge, and, God willing, the sector will gain a different momentum."
SHARES OF TWO BANKS TRANSFERRED
One of the first concrete steps in the merger process was taken with the announcement made by the Turkey Wealth Fund last month. TVF Participation Finance Investments Inc., a 100 percent subsidiary of TVF, took over all shares of Ziraat Katılım and Halk Katılım.
According to the statement by the Turkey Wealth Fund, closing transactions were completed after the necessary legal and regulatory processes under the share transfer agreements. Thus, an important stage was left behind in gathering public-capital participation finance institutions under a single roof.
THREE BANKS WILL OPERATE UNDER A NEW NAME
After the completion of the merger process of Ziraat Katılım, Vakıf Katılım and Halk Katılım, it is planned that they will operate under a common structure with a new name. However, there is not yet definitive information on the name under which the new bank will operate or when the merger will be completed.
With the merger, it is aimed to strengthen the financial capacities of public participation banks, increase operational efficiency and raise their competitive strength in the sector. It is also aimed to increase the share of participation banking in Turkey's financial markets.
TURKEY INSURANCE MODEL TO BE APPLIED IN BANKING AS WELL
The plan to merge public participation banks also brought to mind the restructuring carried out in the insurance sector in 2020. At that time, Ziraat Sigorta, Halk Sigorta and Güneş Sigorta were gathered under a single roof to create the Türkiye Sigorta brand.
A similar structuring is now intended to be implemented in the field of public participation banking. With the three banks gathered in a single center, it is expected that a stronger financial structure will be created and a contribution will be made to the growth of the participation finance sector.