Evaluation of the Fundamental Differences that Distinguish Participation Banking from Deposit Banks in Turkiye

Journal Title: International Journal of Social Science And Human Research - Year 2024, Vol 7, Issue 09

Abstract

Participation banking, or, more broadly, participation finance, continues to exist as a sector different from deposit banks in principle, purpose, and practice, developing at national and international levels. Understanding the difference between participation banking and deposit banks also provides accurate observation of the operation, processes, and results reflections. For this reason, this study examines the fundamental differences that separate participation and conventional banks from each other. Firstly, the study includes elements that differentiate participation banking conceptually and based on basic operating principles. The different structures of participation banks in pricing and balance sheets constitute the basis of the operating mechanism. For this reason, fund collection and allocation methods are explained in detail together with this structure. As a result, the participation banking sector, which continues its development as an alternative finance, was born from a different approach and has differentiated itself from deposit banks in many areas. Knowing these differences is essential in supporting the correct reading and analysis of the sector.

Authors and Affiliations

Tuğba Demirtaş

Keywords

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  • EP ID EP746760
  • DOI 10.47191/ijsshr/v7-i09-68
  • Views 88
  • Downloads 0

How To Cite

Tuğba Demirtaş (2024). Evaluation of the Fundamental Differences that Distinguish Participation Banking from Deposit Banks in Turkiye. International Journal of Social Science And Human Research, 7(09), -. https://europub.co.uk/articles/-A-746760