Participation banking

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Participation banking is a name given to Islamic banks mainly in Turkey,[1][2] as well as in the broader MENA region. While participation banks reached[clarification needed] only 2% of net assets in the year 2000,[citation needed] in 2010 the rate increased up to 4.3%.[citation needed] In the third quarter of 2013, the rate increased up to 6.1% with 90.7 billion TL in assets.[citation needed] Regarding the profit margins of the participation banks, Malaysia, Indonesia and Gulf countries have more than 50% of the market share, it is stated[citation needed] that Turkey has more potential in growth. Also, Turkey, Pakistan, Bangladesh, and Indonesia stand as the leading countries[clarification needed] among the participation banks.[3] Saudi Arabia, the UAE and Malaysia are the three largest participation banking markets, in terms of assets.[4] Iran has 36% of the worldwide assets of the participation banks, Malaysia has 17%, Saudi Arabia has 14% and Turkey has 3.1% of the[clarification needed] market share.[citation needed] According to Ernst & Young, the assets of global participation banking reached US $930 billion in 2015, with growth rates declining across all regions compared to previous years.[4]

List of participation banks[edit]

Defunct[edit]

References[edit]

  1. ^ "Performance comparison of Islamic (participation) banks and commercial banks in Turkish banking sector". Emerald Insight. doi:10.1108/EMJB-05-2013-0024.
  2. ^ "Megabank project to support Turkey's aim to increase share in participation banking". Daily Sabah. 2017-05-20. Retrieved 2018-05-24.
  3. ^ Yücel Ersöz; Sait Osman Aytaman (2014). "Participation Banking in Turkey: Important Steps for Growth" (in Turkish). Deloitte Türkiye. Retrieved 2018-05-24.
  4. ^ a b "Global participation banking assets reached US$930 billion in 2015". Ernst & Young. Archived from the original on 2018-05-24. Retrieved 2018-05-24.