The role and importance of public participation banks in the participation banking sector: The case of Turkey

In this study, the place of participation banking, which made its presence felt and continued to develop as a result of the regulations in the Banking Law, especially after 2005, in the banking sector was examined. In addition, developments in the participation banking sector, which was included in the priority development program in the Tenth Development Plan, were discussed. It has been determined that the development process of the participation banking sector has accelerated with the establishment of state-owned participation banks in order to contribute to the development of the participation banking sector since 2015. Although public participation banking has a history of seven years, its active role in the participation banking sector is reflected in financial items and it has been observed that it has an average of 30-35% share in the sector. Based on these data, it is understood that public participation banks will play a leading role in developing the participation banking sector.