Evaluation of export credit bank of turkey (Turk Eximbank) applications in foreign trade financing in participation banks

Participation banks operating within the principles of interest-free banking and Islamic economics have become one of the important actors of the financial system by going through a phase in the period from 1985 to these days. Participation banks collect funds from depositors with interest sensitivity and they use it in interest-free banking activities. Participation banks act on the basis of sharing the profit or loss that is obtained. Besides, participation banks have an important role in the field of foreign trade financing. Participation banks can use both present classical fund raising methods in foreign trade financing and put foreign trade products at customers disposal. Export Credit Bank of Turkey (Turk Eximbank) applications are among the products used in the financing of foreign trade in participation. Until 2014 while some of the participation banks provided access to Turk Eximbank applications with a letter of guarantee to their customers, some of the participation banks doesn't use Turk Eximbank resources in their products because of their boards rejections. In 2014, Turk Eximbank Preshipment Export Credit program was regulated within the Interest Free Finance Standards and started to be used for exporter customers through participation banks. In this study, the effectiveness of Turk Eximbank applications in participation banks was evaluated. The products currently in use were compared with conventional banks, evaluated within the Interest Free Finance Standards, financial growth figures were put forward and some of Turk Eximbank products that are not in use in the participation banks were evaluated within the scope of applicability.