This entry analyzes the relationship between the Central Bank of the Republic of Turkey and participation banking in the context of contemporary central banking practices. Established in 1931, the bank has experienced substantial transformations to align with the nation’s economic progress. Initially, it sought to facilitate economic expansion. In 1970, its autonomy was instituted under passed legislation. After the 2001 economic crisis, the bank experienced a substantial restructuring, relinquishing its role in financing economic expansion and supporting the public sector, and was assigned the responsibility of maintaining price stability. The emphasis here is on the autonomy of executing monetary policy tools. The legal and operational framework for participation banking was initially established in 1983, facilitating the creation of interest-free banking institutions in Turkey. Nevertheless, notwithstanding these legal provisions, participation banks encounter challenges in accessing CBRT liquidity management facilities and monetary policy operations due to their commitment to the interest-free concept. Until 2013, participation banks were prohibited from these instruments because of the interest-based nature of open market activities. However, revisions to the Central Bank’s Implementation Instructions permitted participating banks to participate in open market operations using Islamic financial instruments, specifically sukuk. This enhances participation banks’ liquidity management skills. Furthermore, regulations permitting the pledging of foreign currency assets issued by Islamic financial institutions for repurchase agreements were introduced. In Turkey, the current changes to the Bank seek to enhance the integration of participation banking into the national monetary framework. The Participation Banking Department was created at the Bank in February 2021. This new entity seeks to enhance cooperation with participating banks and address the sector’s particular challenges.