Agenda What does “Islamic banking” stand for?

• Islamic Banking :
• A Journey to the Basics

• Istanbul
• 2011

• MURAT ÇETİNKAYA
• Executive Vice President
• Kuwait Turkish Participation Bank

Agenda

• What does “Islamic banking” stand for?
• What relevance does Islamic banking have in the modern financial system?
• What are the current trends and areas of growth?
• Where does Turkish experience stand in Islamic banking?
• Kuwait Finance House (KFH) and Kuwait Turkish Participation Bank

From niche to critical mass

• Increasing market presence

• Growing at 15 to 20% per annum
• Size estimated at USD 900 billion globally
• New markets welcoming Islamic banks and products

• Market-driven proposition

• Retail demand has historically the backbone of the industry
• Sensitivities to principles more visible on retail deposit
• But corporates and even sovereigns showed appetite for the products
• Market-driven product development proved to be successful
• Self-regulating organisations accompanied global Islamic banking boom

• Global scale

• More than 250 Islamic banks worldwide operating in over 75 countries
• A wide range of interest varying from U.K. to Singapore
• Widening customer base including sovereigns to top global corporates to tap Islamic finance markets

• Islamic finance industry is developing a global reach…