The Evolution of Participation Banking in Turkey – By Liam Hardy

Participation banking, a moniker for financial practices structures 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. However, it has grown in recent years because of more permissible public attitudes, decreased trust in the conventional banking sector, and the desire to attract capital from the Gulf region. As a result, the current government 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.
Liam Hardy, Master of International Business 2012, is concentrating in International Finance & Banking and Southwest Asia & Islamic Civilization. He graduated with a B.A. from Georgetown University. He previously worked for a Turkish newspaper and business association and spent summer 2011  as a graduate intern for the Black Sea Energy and Economic Forum of the Atlantic Council.

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