A comparativa analysis in participation banking sector

The purpose of this study is to analyze the factors and variables affecting the reasons for the state-owned participation banks to fall behind the privately-owned participation banks. The research data of this study that use the mixed method are obtained from secondary sources and via interviews. The interviews were conducted with semi-structured interview technique with 12 people selected from 12 medium / senior executives and commercial segment partners working in private and publicly owned participation banks. The findings obtained from interviews with secondary sources were examined with comparative analysis technique and solutions were tried to be put forward. The results of the study indicate that state-owned participation banks have ensured rapid growth, engaged in high volume fund collection and utilization activities that are not widespread in the growth process, and they are engaged in high volume fund collection and utilization activities rather than focusing on the acquisition of individual and commercial customers, and privately-owned participation banks are mainly focused on their existing customers and their rate of gaining additional non-sector customers is very low and they are focused on short-term balance sheets and profitability and consequently moved away from medium/long term sustainable growth and profitability. As such, public participation banks are likely to have difficulties in achieving their objectives and expected growth targets if they continue to operate with existing strategies. It is considered that this study, which comparatively analyzes participation banking from a different perspective would contribute to relevant literature and also to the stable growth of the sector and consequently, to the Turkish economy. Keywords: Participation Banking, Comparative Analysis, Strategy, Stability