IslamicFinance.de

The ratings on Kuveyt Turk Participation Bank continue to reflect its overall sound risk profile. IIRA’s assessment on Kuveyt Turk Participation Bank encompasses sponsor support from its key shareholders that include Kuwait Finance House, Islamic Development Bank and other quasi-sovereign entities such as the General Directorate of Foundations – Turkey and Kuwait Public Institution for Social Security.
The Kuveyt Turk Participation Bank, established in 1989, is a dominant participation bank operating in Turkey. Within the participation banking domain, the bank benefits from its widespread presence through its network of 391 domestic and overseas branches. With a still expanding branch footprint, IIRA expects the bank to grow at a stepped-up pace this year benefiting from government’s ongoing credit stimuli and improving macroeconomic environment in the country. As such, the bank is expected to maintain and even strengthen its market position over the next two years despite the entry of larger financial institutions in the participation banking domain in Turkey, thereby supporting the stable outlook. Over time, however, the participation banking sector is expected to become increasingly competitive as the larger commercial banks in the country foray into it.