Participation Banking

What is it?

How Does It Work?

These banks share the incurred profit and loss with savers by utilizing the funds collected from savers in trade and industry within the scope of interest-free principles. The funds collected in participation accounts in TL, USD, and EUR are utilized with corporate financing support, personal financing, financial leasing, and profit and loss partnership methods. The procurement of raw materials, semi-finished products, or finished products that trade and industry need is ensured through these methods.

These banks do not employ high-risk and speculative transactions that involve interests and uncertainty in all types of banking transactions. Banking transactions regarding topics that are harmful to society such as alcoholic beverages, gambling, firearms, and tobacco products cannot be made. The purpose of the existence and golden rule of Participation Banks is the “Interest-Free Principle”. The aim of the “Interest-Free Principle” is to collect funds in line with the profit and loss participation principle and allow for using funds by buying the good that the customer needs from the seller in advance and selling it on maturity to that customer and by also using leasing, partnership, etc. methods.