Introduction Islamic finance in Turkey is generally referred to in legal and regulatory language as participation finance or participation banking. Instead of conventional interest-based banking, participation banking is based on principles such as profit-and-loss participation, asset-backed financing, trade-based financing, partnership, leasing, agency and compliance with interest-free finance standards. Turkey has developed a distinctive participation banking […]
Introduction Letters of credit are among the most important instruments used in international trade finance in Turkey. Turkish exporters, importers, banks, logistics companies, commodity traders, manufacturers and foreign commercial partners frequently rely on letters of credit to reduce payment risk and documentary risk in cross-border sales. A letter of credit allows a seller to receive […]
Introduction Bankruptcy and insolvency risks are among the most important legal issues in Turkish finance transactions. A loan, credit facility, financial leasing agreement, factoring transaction, project finance structure or cross-border financing arrangement may appear commercially strong at the signing stage, but its true legal strength is tested when the borrower becomes financially distressed. At that […]
Introduction Enforcement of foreign loan agreements in Turkey is a critical issue for foreign banks, international lenders, private credit funds, export credit agencies, development finance institutions, corporate lenders, shareholders and investors financing Turkish borrowers. A foreign loan agreement may be carefully drafted under English law, New York law, Swiss law or another foreign legal system, […]
Introduction Financial institutions in Turkey play a vital role in corporate finance, consumer finance, trade finance, SME funding, equipment acquisition, receivables financing and alternative credit structures. Although banks are the most visible actors in the Turkish financial system, non-bank financial institutions such as financial leasing companies, factoring companies and financing companies are also essential parts […]
Introduction Banking compliance in Turkey is a central pillar of the Turkish financial system. Banks do not operate as ordinary commercial companies. They collect deposits, extend credit, process payments, manage customer data, participate in financial markets, offer digital banking services, issue guarantees, hold sensitive financial information and create systemic risk. For this reason, Turkish banking […]
Introduction Merchant acquiring in Turkey is a central component of the digital payments ecosystem. Every time a customer pays a merchant by card through a physical POS terminal, virtual POS infrastructure, mobile POS solution, online checkout page, QR payment interface or marketplace payment flow, there is usually an acquiring relationship behind the transaction. The acquiring […]
Introduction Payment fraud in Turkey has become a major legal issue for consumers, merchants, banks, payment institutions, electronic money institutions, e-commerce platforms and fintech companies. As payment systems become faster, more digital and more integrated into daily life, fraudsters increasingly exploit weaknesses in online banking, card payments, virtual POS systems, QR payments, digital wallets, money […]
Introduction Banking-as-a-Service, commonly known as BaaS, is one of the most important legal and commercial developments in Turkey’s financial technology sector. In a BaaS model, a licensed bank provides banking services through the digital interface of another business, usually a fintech platform, marketplace, e-commerce company, mobility application, telecom operator or digital ecosystem provider. The customer […]
Introduction Open banking in Turkey is one of the most important legal and technological developments transforming the Turkish financial sector. Traditional banking was historically based on a closed model: banks collected and stored customer data, and customers accessed financial services mainly through the bank’s own branches, internet banking platforms, mobile applications and call centers. Open […]