PARTICIPATION BANKING ON THE AXIS OF APPLICATION EXAMPLES FROM THE WORLD

Abstract

The interest-free banking system which entered into the world economic literature as though 50 years ago started to come out
from the thought stage in the 1970s and in 1971 the first interest-free bank was established in Egypt. Today, the interest-free
banking system has progressed not only in Islamic countries but also in countries where the financial sector such as the United
Kingdom and the US are at a very advanced level.
Private Finance Institutions with the first name, which was established in 1983 in our country, started its activities in 1985 and
since 2006, it has been called as Participation Banks. The Participation Banks, which have made great progress especially in
the last decade in the world, have made a great leap in Turkey especially after 2001 and have become able to compete with
other commercial banks. With the legislative changes made in 1999 and 2001, Participation Banks are subject to the Banking
Law and have great contribution in achieving equal rights with commercial banks.