To participate in the profits and losses based on my review of the historical background of interest-free banking, interest-free banking needs in the modern sense of the 20th Century, industrialization began to occur in Islamic countries and movements in the 1970s with a sudden increase in oil prices is seen to occur. Individual sense of people dispositions traders in the hands of profit-loss partnership based assessment but industrialization with the major investment projects for financing the personal savings together to bring interest to a bank was required.
BC’s history of interest-free banking Who ruled in Babylonia between the years 2123-2081 ranges. 100-107 famous Hammurabi parts of the loan (borrowing), while showing how to edit their work, especially as interest-free investment as the first example in history has emerged. The emergence and spread of Islam along with borrowings, such as partnerships and leasing also developed the basic concepts of current interest-free banking and found a broader spectrum of applications.
The most important example of interest-free banking in Turkey is a member of the Islamic Development Bank. Turkey Islamic Development Bank in 1984, the permanent members of the Board has obtained the right to possession. Thus, Turkey is under fifty states gathered in the Islamic world’s largest financial institutions has been very active in a position to play a role.
Among practitioners today Citibank, Barclays Bank, Commerzbank, including classics such as banks’ interest-free banks, South Africa, stretching from Kazakhstan to Pakistan from the United States and a number of geographical reach to 60 countries are active.
Growth of import-substitution policies until the 1980s, Turkey followed after that date field goal to open the world began to pursue the strategy of growth through exports. Opening to the outside world that the existing strategy in the field of financial innovation has enabled our country to be won. 28/07/1981 in Turkey at the 2499 Capital Market Law was adopted in 1983 established the Istanbul Stock Exchange and the Stock Exchange together with the establishment of all capital market instruments are introduced one by one. Likewise, the Central Bank was established within the money market Interbank market, foreign currency exchange with leasing, factoring companies, such as capital market intermediaries, many new institutions were included in the financial system. The foreign exchange crisis experienced in that period, foreign capital needs and clogged the wheels of the economy in order to be returned to the organization of foreign banks in Turkey and 13 foreign banks were allowed to open branches in Turkey has.
That’s international expansion during the world 1970s since successfully implemented an interest-free banking practice Bulent nation of the Prime Minister of Turkey in the period on the agenda was moved and Prime Minister Turgut ÖZAL’in prepare and President Kenan Evren’s approved 12/16/1983 day and 83/7506 dated decree savings interest-free basis, provided this opportunity for our citizens who want to evaluate. Published in the Official Gazette on December 19, 1999 Banking Law No. 4491 on the Amendment of the Banking Act 4389 and amended some articles of the Law of Private Financial Institutions Act were included in the Bank. Private Financial Institutions by implementing targeted, in Turkey, which have low private savings, be encouraged, especially by religious conviction “bag of six” in the discarded, the economy outside of real estate, currencies, gold areas such as floating-savings to the economy to gain has been. During that period he PIAR’ın Banking Studies, according to the conventional banks in Turkey because of their faith deposit is 15% of people who do not invest. ÖFK’larının second goal in the establishment of the Gulf countries like Saudi Arabia and Kuwait provided the source is foreign to our country.
Private Financial Institutions Decree No. 83/7506 on the Establishment and attached with the Treasury and Foreign Trade after the publication of the Central Bank Communiqué, since 1985 Special Finance Corporation was established in Turkey 6. Participation of private financial institutions in 2006 was awarded the status of the bank. Participation bank in Turkey as of today has been operating four units.
Participation banks are established pursuant to the Council of Ministers Decision, in accordance with the Law on Banks and operates more than 24 years is a period of six bags of money to be earned in the economy are vitally important functions. In a sense, Venture Capital (Venture Capital) organization in the nature of the participation banks, they collect discarded (bag of six) funds directly Turkish industrialists and businessmen of the needed raw materials, semi finished and finished goods and investment goods supplied to use by the country’s economy contributed substantially .
Source : kuveyt turk