Research Information System
Uluslararası Balkanlarda Sosyal Bilimler Kongresi 5, Sancak-Novi Pazar, Serbia And Montenegro, 2 - 07 June 2013, vol.1, no.99, pp.113-130, (Full Text)
Obviously, conventional banks all over the world have lost $400 billion due to the global credit crisis; on the contrary, Islamic Financial System together with Participation Banks have not been affected almost. Global financial crisis has increased the general interest towards participation banks all over the World and the curiosity of investors and businessmen from developed-economies also began shifting to interest-free financial instruments. It can be said that many of the conventional banks all around the globe have been left no choice but to fire their employees; however participation banks (interest free-banks) have continued to hire new employees and grow further. The fact that stability and endurance of interest-free banks against present financial shocks has shown this kind of banking system, participation banks as a remedy for weaknesses of today’s existing financial system and started to be seen as an alternative to conventional banking system. Generally, principles on which interest-free financial system was built, causes financial transactions to be precise and stable. In order to provide people with responsibility and justice, participation banks has to consider the understanding of labor, risk, equal conditions and production which is called as ivad. As Turkish economy has been one of the best performing economies during the global financial crisis due to its strong financial system, including both conventional and participation banks together, some important lessons for future banking applications can be taken from the Turkish Case. Even Turkish participation banks provide more innovative instruments and various kinds of financial services, they still have a long way to go.