Abstract:
The fact that today's banking system is based on interest has become inevitable to develop a banking system in line with Islamic principles. Muslims constitute approximately 30 percent of the world population and the need to utilize the increasing oil revenues in the Middle East made it necessary to create a new banking concept. In this direction, after the first trials, the Islamic Development Bank was established in 1975 with the initiative of 7 countries, which constituted the first example of Islamic banking. After that, despite a 45-year history, the Islamic banking system spread rapidly and more than 300 institutions providing interest-free banking services were established around the world, and their total asset size reached 1.2 trillion dollars. Over time, Turkey has adapted to the rapidly developing interest-free banking system in the world. As a matter of fact, the share of four participation banks serving in Turkey in the total banking sector has reached 5.1 percent as of today. With this study, it has been tried to explain that Islamic banking is growing day by day in the world and in Turkey, and the interest-free banking system has increased its share by showing a steady development despite having a small share in the total banking sector. In this study, the performance of participation banks was determined with the analysis made in the R program and compared with commercial banks.
