Turkish Islamic Banks Gave Mostly Construction Loans

(Corrects story yesterday to show Yahsi is CEO of Albaraka Turk, not Asya Katilim in the second paragraph.)

Jan. 18 (Bloomberg) -- Turkey’s Islamic banks gave most loans to construction companies and will continue lending to Turkish firms this year, Sabah reported.

The industry awarded 14.8 billion liras ($8 billion) of loans to constructors as of November, 6.5 billion liras to trade and retail companies and 3.8 billion liras to textile firms, the Istanbul-based newspaper said citing Fahrettin Yahsi, chief executive of Albaraka Turk Katilim Bankasi AS and head of an association representing the banks.

Islamic banks increased their lending by about 20 percent last year, Yahsi said. Total loans, including personal loans, were 38 billion liras at the end of November, he said. The banks are committed to lending money without changing the loan’s terms before maturity, Yahsi said.

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To contact the reporter on this story: Mark Bentley in Istanbul at mbentley3@bloomberg.net

To contact the editor responsible for this story: Riad Hamade at rhamade@bloomberg.net