Comparison of the Islamic finance sector in Afghanistan and Turkey

The main purpose of this study is to comparatively examine the Islamic Bank of Afghanistan, which is the only fully-fledged bank in the field of Islamic banking in Afghanistan, and the Participation Banking Sector in Turkey.For this purpose, a comparison was made with the financial ratio analysis method for the 2018Q3- 2020Q4 periods of the Islamic Bank of Afghanistan and the Participation Banking Sector in Turkey.Data on the Islamic Bank of Afghanistan was compiled from the website of IBA (Islamic Bank of Afghanistan), and data on the Participation Banking sector in Turkey was compiled from the website of the Participation Banks Association of Turkey (TKBB).The importance of the study is to compare the financial ratios of the Islamic bank of Afghanistan and the Islamic finance sector in Turkey and to reveal whether there are significant differences in their financial performances. The results of the study show that the current ratio of the Islamic Bank of Afghanistan IBA (Islamic bank of Afghanistan) is higher than the participation banking sector in Turkey, and the participation banking sector in Turkey is close to the ideal current ratio.The fact that the debt-to-equity and debt-to-asset ratio is better than the participation banks in Turkey shows that IBA finances equity rather than debt. When evaluated in terms of return on assets and return on equity, it is concluded that the Turkish Participation Banking sector is better than IBA in managing its assets and generating effective income from existing assets.