Abstract:

In the world, participation banking, known as Islamic banking or interest-free banking, has become a type of banking that first operates in Islamic countries and then begins to operate throughout the world. In Turkey, in 1985 they began their activities under the name of Special Financial Institutions (SFK) and with the "Banking Act No. 5411 dated October 19, 2005" the bank status was gained and since 2006 they have continued their activities under the name of Participating Bank. In Turkey, the participating banks have gained a great momentum especially after the 2000s. In Turkey until the last quarter of 2015, only private banks served, while in 2015 public banks also gained more importance with the direction of this area. In this study, the aim is to compare the effectiveness of the methods of funding and funding of private and public participation banks operating in Turkey. In this context, the quarterly data that will cover the 2016-2020 years are analyzed with the help of Data Coverage Analysis and the effectiveness values are calculated. The data is also compared by CCR & BCC entries and output models to measure their activities by private and public banks. The results of the analysis clearly show that private participation banks in Turkey are in front of public participation banks in terms of their staff, branch number, net profit, total active and used funds.

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