A compari̇son between Ottomon Peri̇od of money trust and participetion banking

The money foundations in Ottoman period is one of the most important organizations of regional financial system in terms of its era. Systems of allocating funding of these foundations demontrates similarities with the today's participation banks, but money foundations in relevant period contributed to the development of the region in areas such as social solidarity and cooperation. In addition, these foundations prevented usury and interest by protecting the rights of the parties who need funding, due to the activities carried out of within the framework of Islamic values. Thereby, these foundations which operate in a format very close to the today's private financial institutions' functioning system, served as a bank during the Ottoman period. In the study, the financial principles, operations systems and funding structures of money foundations and participation banks are examined and similarities and differences in terms of current financial system are described with general evaluaitons and comments by the movement from a endowment sample.