Participation banking is the name given to Islamic banks mainly in Turkey[1][2][3][4] as well as MENA region and in other pan-Islamiccountries. Beginning of the era 2000, while participation banks reach only 2%of the net assets, in 2010 the rate increased up to 4,3%. As a result of the momentum of high growth in the last 5 years, the rate increased up to 6, 1% with 90,7 billion TL asset in the third quarter of 2013. Although, regarding the profit margins of the participation banks, Malaysia, Indonesia and Gulf countries have more than 50% of the market share, it is stated that Turkey has more potential in growth.
Also, Turkey, Pakistan, Bangladesh and Indonesia stand as the leading countries among the participation banks.[5] Saudi Arabia, the UAE and Malaysia are the three largest participation banking markets, in terms of assets.[6] 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 market share. According to EY’s ‘Banking in emerging markets’ report, the assets of global participation banking reached US$930b in 2015, with growth rates declining across all regions compared to previous years.[6]
List of participation banks
- Ziraat Participation Bank
- Vakıf Participation Bank
- Turkey Finance Participation Bank
- Albaraka Türk Participation Bank
- Kuwait Turk Participation Bank
Defunct
- Asia Participation Bank (Est. 1996, closed in 2016)
References
- ^“What is Participation Banking”. IGI global. Retrieved 24 May 2018.
- ^“Performance comparison of Islamic (participation) banks and commercial banks in Turkish banking sector”. Emerald Insight. Retrieved 24 May 2018.
- ^“Megabank project to support Turkey’s aim to increase share in participation banking”. Daily Sabah. Retrieved 24 May 2018.
- ^“STABILITY OF THE PARTICIPATION BANKING SECTOR AGAINST THE ECONOMIC CRISIS IN TURKEY”. ecojournals.com. Retrieved 24 May 2018.
- ^“Participation Banking in Turkey – Deloitte”. Deloitte. Retrieved 24 May 2018.
- ^ Jump up to:ab “Global participation banking assets reached US$930 billion in 2015”. Ernst & Young. Retrieved 24 May 2018.