One of Turkey's largest state-owned banks, Ziraat Bank, has been given permission by the country's banking regulator to set up an Islamic bank, according to the government's official gazette -- a daily printed record of legislative acts and notices -- published Wednesday.
The Banking Regulation and Supervision Agency issued a certificate giving permission to Ziraat Bank to establish an Islamic bank with a $300 million capital.
Ziraat and its sister companies -- Ziraat Insurance, Ziraat Savings, Ziraat Investment and Ziraat Technology -- will be the shareholders of the new bank.
Last August, deputy prime minister responsible for the economy, Ali Babacan, disclosed government plans to establish three state-owned Islamic banks as a subsidiary of the current state-run lenders by the end of 2015.