Saturday, November 28, 2015 13:16 [Daily Archive]

Finance Hurriyet Daily News
Previous     Next
Islamic banking in Turkey
ISTANBUL - Islamic banking in Turkey dates back to 1985, when the government, led by the late Turgut Özal, passed legislation for interest-free banking. The first "participation bank" was Albaraka Türk, established in February 1985, followed by Faisal Finans two months later.

Islamic banks offer customers profit-sharing proceeds instead of interest, and charge borrowers participation-sharing, instead of loan interest.

They operate two types of accounts to collect funds from depositors. One is a "current account" that does not provide any type of return, but offers conventional services such as cheque books, money transfers and documentary collection.

The second is a profit-loss sharing participation account, that can be opened in U.S. dollars, euros or liras for a minimum of 30 days. The holders of accounts share the profits and the losses as a result of an investment in funds.

  • ’Turkey got more than it wanted on Nabucco’
  • Capacity utilization rises to 72.7 percent
  • British Airways strike risk grows with layoffs
  • Turkey expects to receive €450 mln annually from Nabucco
  • High Iraqi demand aids Turkish exporters
  • US safety net for unemployment torn
  • Hoping to tip the scales of US, Turkey trade