The Türkiye Wealth Fund has signed agreements to acquire 100% of the shares in state-owned participation banks Ziraat Katılım and Halk Katılım, marking the first step toward consolidating the country’s Islamic finance sector.

The move is part of a broader plan previously announced by President Recep Tayyip Erdoğan to bring three state-owned participation banks under a unified structure, according to Türkiye Today.

The transfer of shares is expected to be completed by the end of 2026, subject to the necessary regulatory approvals. Vakıf Katılım is also expected to join the consolidation at a later stage.

Turkish authorities aim to create a larger financial institution capable of strengthening the sector’s competitiveness and increasing its share of the country’s banking market.

The move comes as participation banking continues to expand in Türkiye. In August 2026, the sector’s total assets reached 5.35 trillion Turkish lira, while its share of overall banking assets rose to 9.6%, up from 8.6% at the end of 2025.

The planned consolidation is expected to reshape Türkiye’s state-owned Islamic finance sector as authorities seek to strengthen its position in the domestic financial market.