Abstract:

Banking sector is the sector with the largest share in the financial system in Turkey. In the meantime, participation banking sector is increasing its share in the banking sector day by day, as there is a large segment of our country desiring transactions free from interest. The present study aimed to measure the financial performance of the Turkish Participation Banking sector for the period between January 2021 and October 2022. Thus, it is aimed to determine the most important financial performance indicators within the sector for Islamic banks. In this study, performance evaluation was made on 6 criteria making use of the total sector data of participation banks. These criteria include Loans, Dividends Received, Return on Assets, Return on Equity, Operating Expenses / Average Total Assets, and Liabilities / Total Equity, respectively. After weighting the criteria with the LOPCOW method, the alternatives were ranked using the MOOSRA methods. The results of the LOPCOW method showed that the most effective criterion in determining the financial performance of participation banks is the Foreign Resources / Total Equity criterion. The findings of the current study show that the most successful period of the participation banking sector was October 2022 while the most unsuccessful period was January 2021. Moreover, the findings reveal that the performance of the sector tends to increase continuously.

Keywords: