Islamic finance, with its asset and risk sharing construction, is seen as having more powerful structure than interest banking in terms of both reducing systematic risks and having a strong communication with financial sector and real economy. As these banks, called as financial banking in Turkey, are working according to financial model based on real trade; turning these banks into more resistant than deposit banks against various shocks of banking sector, the most of which is non-performing loans. These non-performing loans are the most important sign of the qualities of banks. The increase of non-performing loans effect banks and real sector negatively.
This book is analyzing the factors that specify non-performing loans of participation banks according to Islamic participles and determine the differences with deposit banks. Also this book, the indicative of non-performing loan that is the most important problem in participation banks which are active in Islamic finance field are identified and put a new complexion on the sector.