Participation Banks Association of Turkey

Participation banks in Turkey, which provide financial intermediation services based on Islamic principles, were not included in the bank classification at the time of their establishment. These institutions, which were previously classified as private finance institutions, gathered under the Private Finance Institutions Association established in 2001 and took the first step toward institutionalization to represent the sector and encourage a professional structuring. In 2005, the Participation Banks Association of Turkey took its current name when the term participation bank was preferred instead of the term special finance institution. The Association works to ensure that participation banks operating in Turkey operate under conditions of free competition, to grow the sector, to reduce its vulnerability, and to establish official connections in terms of international cooperation. It contributes to unity within the sector by making advisory decisions for participation banks. At the same time, it acts as a reliable data center by ensuring the regular publication of data on participation banks. In this entry, information on the establishment and organizational structure of the Participation Banks Association of Turkey is given and its function in the course of the sector is emphasized.