Participation banks' liquidation transactions of non performing loans

Participation banks' liquidation transactions of non performing loans were examined in this study. The purpose of current study is introduce liquidation policies of non performing loans of participation banks' to effectively manage and reveal liquidation methods. In the first part of the study, Islamic finance concept and rules are examined. In the second part of the study, detailed information about participation banking and products is given. Afterwards, non performing loans those were defined, reasons and results was shared in detailed. Legal regulations and accounting systems informations about non performing loans of participation banks are given. In the last part of the study, liquidation procedures of nonperforming loans were shared. In the study, the performance of participation banks in managing non performing loans is compared with traditional banks and worked to create a guiding resource to effective management to non-performing loans of participation banks. Keywords: Non Performing Loans, Participation Banking, Liquidation Transactions, Islamic Finans