In Turkey adherence banking and adherencebanksyield with alternative investment isntrument yields analysis (2004-2006)

Contrary to the classical banks who ensure constant yield to the depositors, development banks, that is the subject of this study, adopt the method allotment of shares from the yield instead of interest and transfer the deposits anto real economy by way of joint profit and loss. The operation of these banks as well as their shares in financial system, comparing the yields they supplied to the investors with market have been investigated in the study. We can research the legal statue which has been appeared in Turkish jurisprudence in regard with Special Financial Institutions by the degree issued in 1983 by the Council of Ministers in three steps. In the first step Special Financial Institutions have been managed by the circulars of Turkish Central Bank in the period of 15 years, between 1983-1999. In this step they had no legal support. In the second step, they earned a legal rest by the Law of Bank, issued in the end of 1999. At the last step, they were renamed as ? Adherence Banks? by the regulations made in November, 2005. Recognition in international arena is the main motive behind the change. However, this change was titular. In the fields of being away from interest and participation in loss and profit there were no changes. As the Adherence Banks abstain interest they have been institutions meeting the persons who are averse depositing in banks with the interest eith the ones who are evading investments due to heavy burden of interests.In other words, they have met the labour with capital. Not only addressing the ones who are away from interest they also nestled the instruments without interest presented by the banks with interest. Adherence Banks tat injecting the deposit kept in the current and participation accounts into thereal economy under the name of participationin profit and loss account, make investments in higher-yielding areas, thanks to the experts working fort hem, consequently they supplyto form share of profit rate at the level of interest rate or near to it.Instead of keeping deposits in accumulation or keeping them as treasury bills that have no any contribution to real economy, adherence banks transfer them directly into the real economy. In this master degree study we researched the special financial institutions (Adherence Banks) which are in active in our country since 1983 with the aspectsof founding stages and functions by comparing them with the other banks. In the last chapter we analysed the comparisions of profit share yields with the IMKB yields by Treynor, Sharpe and CAPM methods and tried to provide information to the investors by comparing the yields. Treynor, Sharpe and CAPM methods are only used fort he purpose of comparing interest, profit share and IMKB yields in terms of efficiency. By making out a case that profit shares distributed by financial institutions are over close to each other in the last 3 years because of difficulties in providing profit share rate, operations have been effected on the base of Turkish Financial Institution?s data. According to the each three methods the yield of profit share has been found higher. On account of having less variations in analyses Treynor method is found not reliable. As the market is not effective (less of competitive market) CAPM analys has been found not reliable. As Sharpe method is used in less cases in variated portfolios its data of analyse is more adequate in terms of reliability.