Volume 07 Issue 09 September 2024
Tuğba Demirtaş
PhD, Central Bank of the Republic of Turkiye, İstanbul/Turkiye,
https://orcid.org/0000-0002-8052-6082
DOI : https://doi.org/10.47191/ijsshr/v7-i09-68Google Scholar Download Pdf
ABSTRACT
Participation banking, or, more broadly, participation finance, continues to exist as a sector different from deposit banks in principle, purpose, and practice, developing at national and international levels. Understanding the difference between participation banking and deposit banks also provides accurate observation of the operation, processes, and results reflections. For this reason, this study examines the fundamental differences that separate participation and conventional banks from each other. Firstly, the study includes elements that differentiate participation banking conceptually and based on basic operating principles. The different structures of participation banks in pricing and balance sheets constitute the basis of the operating mechanism. For this reason, fund collection and allocation methods are explained in detail together with this structure. As a result, the participation banking sector, which continues its development as an alternative finance, was born from a different approach and has differentiated itself from deposit banks in many areas. Knowing these differences is essential in supporting the correct reading and analysis of the sector.
KEYWORDS:Participation and Deposit Banking, Participation Banks Balance Sheet Structure, Pricing Differences
Jel Codes:G21, G10, G00
REFERENCES1) Agriyanto, R. (2015). Redefining Objective of Islamic Banking; Stakeholders Perspective in Indonesia. Volume VI, Edisi 2, October 2015
2) Akçalı, B.Y. Finansal Kurumlarda Finansal Analiz (Financial Analysis in Financial Institutions). Retrieved January 10, 2022 from,http://auzefkitap.istanbul.edu.tr/kitap/isletme_ue/finkurfinanaliz.pdf
3) Bayındır, S. (2005). İslam Hukuku Penceresinden Faizsiz Bankacılık (Interest-free Banking from the Perspective of Islamic Law). İstanbul, Rağbet Publications
4) Chong, B.S., Liu M.H. (2009). Islamic Banking: Interest-Free or Interest-Based. Pacific-Basin Finance Journal 17, 125-144
5) Çemberlitaş, İ. (2019). AAOIFI ve UFRS’ye Göre Teverrük Uygulaması, Muhasebeleştirilmesi ve Raporlanması. (Application, Accounting and Reporting of Teverruk According to AAOIFI and IFRS). Inonu University Social Sciences Institute Doctoral Thesis, Retrieved January 10, 2022 from,http://abakus.inonu.edu.tr/xmlui/handle/11616/18227
6) Çetin, A. (2018). Katılım ve Mevduat Bankalarının Piyasa Etkinliğinin Kârşılaştırılmalı Analizi ve Bir Uygulama. (Comparative Analysis of Market Efficiency of Participation and Deposit Banks and an Application). Turkish Banks Association, Publication No:329
7) Dar, H. A. And Presley, J. R. (2000). Lack of Profit Loss Sharing in Islamic Banking: Management and Control Imbalances. Department of Economics, Loughborough University
8) Efe, A. (2021). Katılım Bankacılığı ve İslami Finans Sektöründeki Temel Teknik Sorunların Çözümü (Solution of Basic Technical Problems in Participation Banking and Islamic Finance Sector) Apjir, Cover: 5, No: 2, Vol: 5, Issue: 2, 2021, pp. 303-326
9) Ersoy, A., Hazıroğlu T, Albayrak A., Görmüş Ş, Hacak H. vd. (2019). Yaşayan ve Gelişen Katılım Bankacılığı. (Living and Developing Participation Banking) PBAT Publication, No:12
10) Hazıroğlu, T. (2015). İnsan, Ahlak, İktisat ve Katılım Ekonomisi. (Human, Ethics, Economics and Participation Economics). Journal of Islamic Economics and Finance, 2015/1, pp.145-156
11) Hazıroğlu, T. (2018). Katılım Ekonomisi ve Yeni Zihin. (Participation Economy and New Mind). Yeni İktisat (New Economics), İz Publication
12) Islamic Financial Services Board (IFSB), md.54: musharakah; Retrieved January 10, 2022from,https://www.ifsb.org/terminologies.php
13) Kahf, M. (1999). Islamic Banks at the Threshold of the Third Millennium. Thunderbird International Business Review. 41(4/5), pp. 445-460, https://doi.org/10.1002/tie.4270410409
14) Lewıs, M. K. Algaoud, L. M. (2001). Islamic Banking, Cheltenham: Edward Elgar.
15) Nathan, S. And Ribiere, V. (2007). From Knowledge to Wisdom: The Case of Corporate Governance in Islamic Banking. The Journal of Information and Knowledge Management Systems, 37(4), pp. 471-483.
16) OECD, (2020). How Islamic Finance Contributes to Achieving The Sustainable Development Goals. OECD Development Policy Papers, June 2020, No.30, ). Retrieved January 10, 2022 from https://www.oecd.org/development/how-islamic-finance-contributes-to-achieving-the-sustainable-development-goals-ac1480ca-en.htm.
17) Öztürk, A. (2013). Faizsiz Bankacılık İlkeleri ve Katılım Bankacılığı Eğitimi. (Interest-Free Banking Principles and Participation Banking Training) No:2012/2013-22, Retrieved January 10, 2022 from PBAT.org.tr
18) Rahman, A. (2017). Islamic Banks and Central Banking. Quarterly Bulletin 2017Q3, Bank of England, ). Retrieved January 10, 2022from,https://www.bankofengland.co.uk/quarterly-bulletin/2017/q3/islamic-banks-and-central-banking
19) Official Gazette, (2016). The on-balance sheet asset risk amount of participation banks refers to the value of the assets other than the funds used from participation accounts, valued under Turkiye Account Standards after deducting the special provisions and general provisions set aside by the Regulation on the Procedures and Principles Regarding the Classification of Loans and Provisions to be Set Aside published in the Official Gazette dated 22.6.2016 and numbered 29750. For participation funds, it is the value multiplied by the alpha ratio. The alpha ratio is announced by the BRSA. With the “Regulation on Amendments to the Regulation on the Measurement and Assessment of Capital Adequacy of Banks” published in the Official Gazette dated 27.09.2016 and numbered 29840, the alpha ratio was determined as 50% (from 70%) as of 01.10.2016.
20) Official Gazette, (2018). Official Gazette dated 18.10.2018 and numbered 30569, “Regulation on Amendments to the Regulation on the Procedures and Principles Regarding Acceptance, Withdrawal of Deposits and Participation Funds and Prescription-Barred Deposits, Participation Funds, Trusts and Receivables”
21) Official Gazette, (2021). Official Gazette dated 18.10.2021 and numbered 30569, “Regulation on Amendments to the Regulation on the Procedures and Principles Regarding the Acceptance, Withdrawal of Deposits and Participation Funds and Prescription-Barred Deposits, Participation Funds, Trusts and Receivables”, Article 6/10
22) Official Gazette, (2021a). Official Gazette dated 18.10.2021 and numbered 30569, “Procedures and Principles Regarding the Acceptance, Withdrawal and Limitation-Barred Deposits, Participation Funds, Trusts and Receivables” Article: 7
23) Official Gazette, (2021b). Official Gazette dated 27.09.2021 and numbered 29840, “Regulation on Amendments to the Regulation on Measurement and Assessment of Capital Adequacy of Banks”
24) Official Gazette, (2021c). Official Gazette dated 27.03.2021 and numbered 31436, “Regulation Amending the Regulation on the Measurement and Evaluation of Interest Rate Risk Arising from Banking Accounts Using the Standard Shock Method”
25) Official Gazette, (2021d). Official Gazette dated 18.10.2021 and numbered 30569, “Regulation on Amendments to the Regulation on the Procedures and Principles Regarding the Acceptance, Withdrawal of Deposits and Participation Funds and Prescription-Barred Deposits, Participation Funds, Trusts and Receivables”, Article 6/1
26) Sağlam, M.S., Eğri T. (2020). Mudarebe Finansmanının Katılım Banklarında Uygulanmasının Ahlaki Risk Yönünden Değerlendirilmesi: Türkiye Örneği, (Evaluation of the Application of Mudarabah Financing in Participation Banks in Terms of Moral Hazard: The Example of Türkiye). International Journal of Islamic Economics and Finance Studies. 2020/2: 197-226, doi:10.25272/ijisef.689009
27) Participation Bank Association of Turkiye (PBAT). (2018). KOBİ’ler için Adım Adım Katılım Bankacılığı. (Participation Banking for SMEs Step by Step). PBAT Publication, No:4. Retrieved January 10, 2022 from https://PBATegitim.org.tr/Documents/Yonetmelikler/kobiler-baski.pdf
28) Participation Bank Association of Turkiye (PBAT). (2020). “Katılım Bankacılığı Nedir, Nasıl Çalışır”, (What is Participation Banking and How Does It Work?). Retrieved January 10, 2022 from,https://PBAT.org.tr/Documents/Yonetmelikler/PBAT-Katilim-Bankaciligi-Nedir-Brosur.pdf
29) Participation Bank Association of Turkiye (PBAT). (2021). Yaşayan ve Gelişen Katılım Bankacılığı.(Living and Developing Participation Banking). PBAT Publication, No:12
30) Participation Bank Association of Turkiye (PBAT).(2021a). Türkiye’de Katılım Bankacılığı El Kitabı, (Participation Banking Handbook in Turkiye), PBAT Interest-Free Finance Dictionary. Retrieved January 10, 2022from,https://PBAT.org.tr/Documents/PBATyayinlari97/Turkiyede_Katilim_Bankaciligi_El_Kitabi.pdf
31) Participation Bank Association of Turkiye (PBAT).(2021b). Teverrük Standartı (Tawarruk Standard), Std No:2, ). Retrieved January 10, 2022 from https://PBATdanismakurulu.org.tr/uploads/standartlar
32) Taner, S. (2011). An Analysis of ‘Murābaḥa to Purchase Orderer’ with Particular Reference to Turkey and its Adaptation to AAOIFI Standards. A dissertation submitted to the University of Manchester for the degree of Master of Arts, Islamic Studies‟ in the Faculty of Humanities, https://PBAT.org.tr/Documents/Yonetmelikler/Tez-2011-The-University-of-Manchester.pdf
33) Yılmaz E. (2003). Sendikasyon Kredileri. (Sydication Credits). Öneri Publications. C5, Vol.19, pp.145-154