Turkey merges state Islamic banks in financial sector overhaul

Turkish president Recep Tayyip Erdogan last week announced the merger of three state-owned Islamic banks, unveiling a restructuring plan aimed at expanding the role of participation banking within the country’s financial system.

The consolidation will bring together Ziraat Katilim, Vakif Katilim and Halk Katilim, a move Erdogan said would give “a different dynamic to the sector” during a speech at an Islamic economy event in Istanbul....