42691. The Evolution of Participation Banking in Turkey
- Author:
- Liam Hardy
- Publication Date:
- 01-2012
- Content Type:
- Journal Article
- Journal:
- al Nakhlah
- Institution:
- The Fletcher School, Tufts University
- Abstract:
- Participation banking, a moniker for financial practices structured in accordance with Islamic law, has not traditionally made up a large segment of Turkey's finance sector due to the country's secular tradition since the start of the modern Republic in 1923. However, participation banking has grown in recent years because of more permissible public attitudes, decreased trust in the conventional banking sector after financial crises in 2001 and 2008, and the desire to attract capital from the Gulf region. As a result, the current government, led by the Justice and Development Party (AKP), has sought to shape a regulatory framework for participation banking in line with the country's changing sensibilities towards the role of religion in public life. This has developed in conjunction with an expansion of Islamic finance in the global economy more generally.
- Political Geography:
- Turkey