Abstract:

The interest-free banking system is now called Islamic banking within the banking system. In Turkey, the interest-free banking model, which was established as private finance institutions, changed its name as Participation Banks in the following years and continued its activities. The biggest task of Islamic banks is to contribute to economic growth and development by bringing the funds that are kept under the pillow due to their religious beliefs to the economy. In this study, the definition, working principles, aims and historical developments of the Islamic bank model are given, and the performances of private and public participation banks operating in Turkey for the period 2015-2021 are compared with the CAMELS analysis method. The data used in the study are taken from the financial reports of the Participation Banks Association of Turkey and participation banks. In this study, participation banks are compared among themselves with the CAMELS analysis method, and information is given about the results and successes of the analysis.

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