The impact of alternative banking as a participation bank in Turkey's economy

Interest-free banking, which has made significant development around the world, has achieved a wider range of applications in Turkey with the entrance of the state banks to the sector in recent years. Participation Banks have become widespread with the definition of "interest-free banking" and have played an important role in almost all over the world. These institutions, which step in the finance sector as financial institutions engaged in interest-free banking, have been named as "Participation Banks" with an amendment in banking law. There are several reasons why these institutions are needed in addition to the existing banks. But the main reason is the desire of the individuals to stay away from interest and carry out the banking transactions within the interest free system. In this study, participation banking as an alternative to banks, interest free banking instruments, their emergence and development processes, their inclusion within the system and their effects mainly to the economy of Turkey will be put forward.