The Role of Digital Participation Banks in Turkey's Participation Banks Sector
Chapter from the book:
Şahin,
C.
(ed.)
2024.
Current Financial Developments and Practices.
Synopsis
Participation banks are essential for individuals with interest sensitivity to be included in the financial system. In addition, finance is one of the world's leading sectors in technological development. Individuals' use of transactions integrated with technology provides speed and convenience. Since 2021, active digital banking usage rates have increased rapidly. With these developments, establishing digital banks in Turkey was authorized in 2021. Three digital participation banks and three conventional digital banks were established within three years after the regulation was published. Three of these banks have started operations. This study examines the contributions of two digital participation banks operating in Turkey to the participation banking market share and digital developments. In addition, the financial performance of participation banks is compared, and the financial situation of digital participation banks is interpreted. The advantages provided by the rules that digital banks must comply with by the regulations will be mentioned, and the motivations for establishing these banks will be discussed.