ROLE AND CONTRIBUTION TO ECONOMY FINANCE SECTOR IN THE PARTICIPATION BANKING IN TURKEY
TÜRKİYE’DE KATILIM BANKACILIĞININ FİNANS SEKTÖRÜNDEKİ YERİ VE EKONOMİYE KATKILARI

Author : Hasan LÖK
Number of pages : 132-150

Abstract

The banking sector, which is the biggest stakeholder of the financial system,is classified as deposit, development and investment and participation banking. The most important principle in the participation banks that entered the banking sector in 1983 is to carry out interest-free transactions. After the regulation in the Banking Law in 2005, participation banks were included in the banking system. Participation banks are based on profit and loss. Participatory banks emerging as a result of societal demand are institutions that produce financial products and spread througout the country with a service network. While the institutions contribute to the development of the financial system, they also support the growth of the real sector. In recent years, the shre of the banking sector has increased with the improvement and growth of participation banking. The aim of this study is to examine the concept of participation banking in the foreground in the banking sector and to examine the causes of participation banks, their working principles and their importance in finance sector. The method of working is based on literature review and is also supported by scientific evidence. The study concludes that the participation banks have an increasing share of the banking sector.

Keywords

Participation Banks, Interest Free Banking, Turkey

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