The share transfers are expected to be completed by the end of the year. Credit: sasirin pamai/ Shutterstock.com.

TWF Participation Finance Investments, a wholly owned subsidiary of the Türkiye Wealth Fund, has signed agreements to purchase all shares in Ziraat Katılım and Halk Katılım.

The agreements were executed earlier this month and remain subject to approval procedures involving the relevant legal and regulatory authorities.

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The share transfers are expected to be completed by the end of the year.

The wealth fund said: “In line with the vision of President, H.E. Recep Tayyip Erdoğan, which provides direction for the development of participation finance, significant progress has been made towards enhancing the capacity and competitiveness of publicly owned participation finance institutions, strengthening the participation finance ecosystem and increasing its share within the financial markets.”

The transactions form part of an ongoing plan to place publicly owned participation finance institutions under a single structure. According to the wealth fund, the work is continuing according to the timetable previously established.

In June, Daily Sahab reported that President Recep Tayyip Erdoğan had said Türkiye would bring together the country’s three state-owned participation banks. The proposed combination was presented as part of efforts to increase the role of interest-free finance in the Turkish financial system.

“Combining the strengths of these three participation banks will create significant synergy. God willing, the sector will gain new momentum,” the president noted.

Last month, Türkiye’s banking regulator revoked the operating licence of Bank Mellat’s Istanbul branch. The decision came as the US continued to press other countries to increase economic pressure on Tehran.

The regulator’s notice stated: “It has been decided to revoke the operating license of ⁠Bank Mellat, Head Office in Tehran, Istanbul Turkey Central Branch,” without citing US measures or a specific operational issue.