The conceptual importance of Islamic financial literacy; an applied analysis for university students

Participation banking, or Islamic banking, which has increased in importance recently, has been a system that has continued for years besides traditional banking. The main reason for the birth of Islamic banks is the excess funds held by individuals with religious sensitivity. Especially, the fact that people who demand funds in the financial markets have increased need for funds, and those who have religious sensitivity and who have excess funds in their hands have not been able to participate in the markets despite the fact that their excess funds increase day by day, the need for an intermediary has become evident. The reason why individuals who are religiously sensitive and who avoid trading in financial markets is not trading in these markets is the interest ban. Interest can be defined as profit or return provided for the money used. Interest is forbidden not only in Islam but also in other heavenly religions. In other words, the need for participation banks has become a need not only for countries with Muslim populations, but also for individuals from other religions. The aim of this study is to measure Islamic financial literacy levels of university students studying in different departments. Within the scope of the research, a total of 617 students were surveyed. The survey results were analyzed with SPSS package program. In the analysis, 12 hypotheses were tested. As a result of the analysis, 12 hypotheses were accepted correctly. Keywords: Participation banking, Islamic banking, Interest, Islamic Financial Literacy